Location: Tucson, AZ | Metro: Phoenix-Mesa-Chandler, 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 | $1,080 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,530 | $358,895 | 0.43% | F |
| 3BR | $2,120 | $350,029 | 0.61% | D |
| 4BR | $2,410 | $396,411 | 0.61% | D |
| 5BR | $2,796 | $451,492 | 0.62% | D |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 85653, which covers Marana, Arizona, presents a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1610, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $2,148. This means that the FMR is $538 lower than the market rent, representing a 25% discount. The disparity between these figures suggests that landlords and small-portfolio investors can expect to receive a rental rate that is substantially below the open-market rate when participating in the Section 8 program.
In Marana, where only 15.4% of residents are renters, the median home value stands at $386,435, and the median household income is $86,154. These economic indicators highlight a community where homeownership is prevalent, and the average resident has a higher purchasing power compared to the national average. However, for those who do rely on rental housing, particularly those who depend on housing vouchers, the lower FMR can be seen as a barrier to accessing better-quality rental properties.
The cost of housing voucher tenants below open-market rates is a critical consideration for landlords. While the program ensures timely payments and stable tenancy, the reduced rental income can impact the overall profitability and cash flow of investment properties. Given the market conditions in Marana, where the demand for rental units is relatively low, landlords must weigh the benefits of guaranteed income against the potential for higher yields from market-rate rentals.
To summarize, the gap between the FMR and market rent in ZIP 85653 is $538, or 25%. This makes it a challenging environment for landlords seeking to maximize their returns through rental income. However, the stability and predictability offered by the Section 8 program can still present an attractive opportunity for those focused on long-term investment strategies over short-term gains.
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.