Section 8 Fair Market Rent (FMR) for ZIP 85711 - 2027

Investment Score for ZIP 85711

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	$890
1 Bedroom	$1,000
2 Bedrooms	$1,280
3 Bedrooms	$1,770
4 Bedrooms	$2,010
5 Bedrooms	$2,332
6 Bedrooms	$2,612
7 Bedrooms	$2,821
8 Bedrooms	$2,962

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,000	$164,651	0.61%	D
2BR	$1,280	$253,973	0.5%	F
3BR	$1,770	$301,355	0.59%	F
4BR	$2,010	$351,359	0.57%	F
5BR	$2,332	$444,584	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85711 (Tucson, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 85711 in Tucson, Arizona, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1260 per month. This figure represents 26.9% of the median household income in the area, which stands at $56,121. However, the actual rental market price for a two-bedroom unit is significantly higher, with Zillow reporting a median price of $253,067. The price-to-FMR ratio for a two-bedroom unit is 16.7 times, indicating that actual rents are much higher than the FMR. This discrepancy means that tenants using Section 8 vouchers will face significant constraints in finding suitable housing. The FMR is designed to cover the cost of rent for units that are modestly priced and in good condition, but with actual rents being so high, voucher holders may struggle to find landlords willing to accept their vouchers at the FMR rate. Many landlords might prefer market-rate tenants who can afford the higher rent, leaving fewer options for those relying on Section 8 assistance. #### Affordability & Renter Profile ZIP code 85711 has a population of 42,558, with 50.9% of residents being renters. This indicates a substantial demand for rental properties in the area. The occupancy rate of 93.0% suggests that the market is relatively tight, with most available units being occupied. Given the median household income of $56,121, many residents are likely to be low-income families or individuals who rely on affordable housing options. The high proportion of renters and the tight occupancy rate indicate that there is a strong need for affordable housing in this ZIP code. However, the actual rental prices far exceed the FMR, making it challenging for low-income residents to find affordable housing without financial assistance. The median household income is not sufficient to cover the actual market rent, especially for larger units like three-bedroom or four-bedroom homes, where the FMR is $1750 and $2020 respectively. #### Investor Angle From an investor perspective, the ZIP code 85711 presents a mixed picture when considering cash flow and investment grade. The FMR for a two-bedroom unit is $1260, while the actual median rental price is $253,067. This implies that if an investor were to purchase a property at the median price and rent it out at the FMR, they would likely incur significant losses due to the high mortgage payments relative to the rental income. However, there could still be opportunities for investors who focus on properties below the median price point. If an investor can acquire a two-bedroom property at a price lower than the median, say around $150,000, and rent it out at the FMR of $1260, they might achieve a positive cash flow. The key challenge is finding properties that are both affordable and acceptable to Section 8 tenants and landlords. The investment grade for this ZIP code would be considered moderate to low, given the high price-to-FMR ratio and the potential difficulty in attracting market-rate tenants. Investors should carefully consider the location and condition of properties before making any purchases, ensuring that they can attract either Section 8 tenants or market-rate renters. #### Specific Actionable Insights 1. **Focus on Lower-Priced Properties**: Investors should target properties priced below the median, such as those under $150,000. This strategy can help ensure a positive cash flow when renting out at the FMR. For example, a two-bedroom home purchased for $150,000 would have a monthly mortgage payment of approximately $700 (assuming a 30-year fixed-rate mortgage at 5%). Renting it out at $1260 would provide a net cash flow of about $560 per month, which is feasible. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units like one-bedroom apartments might offer better investment opportunities. The FMR for a one-bedroom unit is $970, and if an investor can find a property priced at around $120,000, they could potentially achieve a positive cash flow. A one-bedroom apartment purchased for $120,000 would have a monthly mortgage payment of approximately $550, leading to a net cash flow of about $420 per month when rented at the FMR. 3. **Engage with Local Landlords**: To understand the local rental market dynamics better, investors should engage with local landlords who currently accept Section 8 vouchers. This engagement can provide insights into the challenges and benefits of accepting vouchers, as well as tips on how to make properties attractive to both voucher holders and market-rate tenants. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 85711 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow when renting out properties at the FMR. Additionally, the significant gap between the FMR and actual market rents suggests that there is limited availability of properties that are both affordable and suitable for Section 8 tenants. Investors looking to enter this market should carefully evaluate the potential risks and consider alternative ZIP codes with more favorable conditions for Section 8 investments.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.