Section 8 Fair Market Rent (FMR) for ZIP 85705 - 2027

Investment Score for ZIP 85705

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$840
1 Bedroom	$940
2 Bedrooms	$1,210
3 Bedrooms	$1,680
4 Bedrooms	$1,900
5 Bedrooms	$2,204
6 Bedrooms	$2,468
7 Bedrooms	$2,665
8 Bedrooms	$2,798

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$940	$176,688	0.53%	F
2BR	$1,210	$217,292	0.56%	F
3BR	$1,680	$276,116	0.61%	D
4BR	$1,900	$302,832	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85705 (Tucson, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 85705 in Tucson, Arizona, indicate that the rental market is relatively affordable compared to other areas. For a two-bedroom apartment, the FMR is set at $1200 per month, which represents 38.7% of the median household income of $37,194. This suggests that while it is a significant portion of the average income, it is still within reach for many residents. However, the actual rents can be higher, as evidenced by the Zillow median price for a two-bedroom property being $216,305, which translates to a monthly rent of approximately $1802 based on a 1.5% annual rental yield. This means that the actual rent for a two-bedroom unit is about 1.5x the FMR, making it challenging for voucher holders who are limited to the FMR amount. #### Affordability & Renter Profile ZIP code 85705 has a high percentage of renters at 55.1%, indicating a strong demand for rental properties. The occupancy rate of 87.3% further supports this notion, suggesting that there is little excess supply in the market. Given the median household income of $37,194, the affordability of housing is a critical issue. A two-bedroom apartment at the FMR of $1200 would consume nearly 40% of the median income, leaving little room for other expenses. This makes the area particularly attractive to low-income households, including those relying on Section 8 vouchers. However, the high actual rents suggest that many residents may struggle to find affordable housing without assistance. #### Investor Angle From an investor perspective, the ZIP code presents a mixed picture. While the FMRs provide a benchmark for affordable rents, the actual market rents are significantly higher. For instance, a two-bedroom apartment renting at the Zillow median price would generate a monthly rent of around $1802, which is well above the FMR of $1200. This implies that investors could potentially achieve positive cash flow if they can secure tenants willing to pay market rates. However, the high actual rents also mean that there is a risk of vacancy if the investor relies solely on Section 8 voucher holders, who are restricted to paying only up to the FMR. The investment grade for this ZIP code would depend on the ability to attract non-voucher tenants. If the investor can secure a mix of tenants, including some who can afford market rates, the investment could be viable. Otherwise, the reliance on Section 8 vouchers alone might not be sufficient to cover the costs of ownership, especially given the high actual market rents. #### Specific Actionable Insights 1. **Target Mixed-Income Properties**: Investors should consider properties that can cater to both Section 8 voucher holders and non-voucher tenants. For example, a three-bedroom home renting at $1670 could be rented to a family using a Section 8 voucher, while a four-bedroom home renting at $1920 could be rented to a family able to pay market rates. This strategy can help balance the cash flow and reduce the risk of vacancy. 2. **Focus on Smaller Units**: Given the high actual market rents, smaller units such as one-bedroom apartments renting at $920 might be easier to fill with Section 8 voucher holders. These units are less likely to exceed the FMR and thus are more affordable for voucher recipients. Additionally, the smaller size might make them more appealing to single individuals or couples who do not require larger spaces. #### Bottom Line For investors focusing specifically on Section 8 vouchers, the ZIP code 85705 presents a challenging environment due to the high actual market rents. The recommendation would be to **skip** investing in this area unless the investor can target smaller units or adopt a mixed-income approach. The high actual rents suggest that relying solely on Section 8 vouchers would not be financially sustainable, as the rents would often exceed the FMR limits. Therefore, a more diversified tenant strategy is necessary to ensure positive cash flow and a stable investment. --- This analysis provides a clear understanding of the rental dynamics in ZIP code 85705, highlighting the challenges faced by both voucher holders and investors. The high actual market rents and the limited purchasing power of the average resident make it a difficult market for Section 8-focused investments.

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.