Section 8 Fair Market Rent (FMR) for ZIP 85703 - 2027
Location: Tucson, AZ | Metro: Tucson, AZ MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $980 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
To determine if you should buy in ZIP code 85703 for Section 8 purposes, follow this decision tree:
- 1) Does the Fair Market Rent (FMR) of $1340 cover your debt service?
- Yes: Proceed to the next question.
- No: Do not invest in this area for Section 8 properties. The FMR does not sufficiently cover the cost of maintaining the property.
- 2) How does the market rent compare to the FMR?
- Above $1340: Market rent exceeds the FMR, indicating that Section 8 tenants may struggle to afford non-subsidized housing. This could be an opportunity for landlords willing to work within the Section 8 program.
- $1340 or Below: If market rents are equal to or lower than the FMR, landlords might find it difficult to attract Section 8 tenants due to higher competition for affordable housing options. Consider other investment strategies or areas where market rents are lower.
- 3) Is there sufficient demand for rental properties?
- N/A% of renters and N/A-day Days on Market (DOM): Without specific data on the percentage of renters and DOM, it's challenging to assess the demand accurately. However, if the percentage of renters is high and DOM is low, it suggests strong demand for rentals, making ZIP 85703 a viable option for Section 8 investments. Conversely, low percentages of renters and high DOM indicate weak demand, which could lead to prolonged vacancies.
The final decision will depend on the answers to these questions. If the FMR covers debt service, market rents align favorably with the FMR, and there is strong demand for rentals, then investing in ZIP 85703 for Section 8 properties is advisable. Otherwise, consider other ZIP codes that meet these criteria better.
Data Sources: FMR data from HUD (2027).
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.