Location: Sierra Vista-Douglas, AZ | Metro: Sierra Vista-Douglas, AZ MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,020 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $319,278 | 0.44% | F |
| 3BR | $1,950 | $345,116 | 0.57% | F |
| 4BR | $2,360 | $393,295 | 0.6% | D |
U.S. Census Bureau data (2024)
The ZIP code 85650, located in Sierra Vista, Arizona, stands out in Cochise County due to its relatively high median income of $91,654 and median home value of $359,395. With a population of 14,876, only 13.8% of residents are renters, indicating a predominantly owner-occupied housing market.
Despite the low rental rate, the Section 8 program remains a significant factor for landlords and small-portfolio investors. The Fair Market Rent (FMR) for ZIP 85650 in fiscal year 2024 is set at $1,290, which is notably lower than the market rent, known as ZORI (Owner Rental Income), which stands at $1,848. This discrepancy suggests that landlords who accept Section 8 vouchers might face a financial gap between the voucher amount and the local market rates. However, the stability of Section 8 payments can be an attractive feature for those seeking consistent income.
Given the data signature, ZIP 85650 appears to be stable rather than transitional. The high median income and home values indicate a solid economic foundation, while the low percentage of renters suggests that homeownership is the norm. For landlords and small-portfolio investors, this means a steady but potentially less lucrative market compared to areas with higher rental rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.