Section 8 Fair Market Rent (FMR) for ZIP 85735 - 2027

Location: Tucson, AZ | Metro: Tucson, AZ MSA

Investment Score for ZIP 85735

N/A

Monthly Rent (2BR)

$1,660

Median Price (2BR)

$N/A

1% Rule

Annual Yield

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	$1,160
1 Bedroom	$1,290
2 Bedrooms	$1,660
3 Bedrooms	$2,300
4 Bedrooms	$2,610
5 Bedrooms	$3,028
6 Bedrooms	$3,391
7 Bedrooms	$3,662
8 Bedrooms	$3,845

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
3BR	$2,300	$330,243	0.7%	D
4BR	$2,610	$370,994	0.7%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

10,718

Median Household Income

$74,158

Housing Units

4,575

Renter Percentage

11.6%

Occupancy Rate

88.7%

Renter Occupied

470

A landlord considering purchasing a property in ZIP code 85735 for Section 8 purposes must evaluate several key factors to determine if the investment aligns with their financial goals. The first step is to calculate whether the Fair Market Rent (FMR) of $1,450 for fiscal year 2024 can cover the debt service on a property valued at $344,521. This involves understanding the monthly mortgage payment, property taxes, insurance, and maintenance costs.

If the FMR of $1,450 does indeed exceed the total monthly debt service, then the next question is to assess the market rent against the FMR. In ZIP 85735, the market rent is $1,515, according to the latest Census American Community Survey (ACS) data. Since the market rent is slightly higher than the FMR, landlords who secure tenants outside of Section 8 can expect to earn a bit more, but the difference is minimal and might not significantly impact overall profitability.

The third consideration is the rental demand. ZIP 85735 has a rental rate of 11.6%, indicating that nearly one in every nine residents are renters. However, the Days on Market (DOM) data is listed as N/A, which means there's insufficient information to gauge how quickly properties are typically rented out. Without accurate DOM figures, assessing demand becomes challenging, especially for Section 8 units which often have specific requirements and wait times.

Decision Tree:

If the FMR of $1,450 covers the debt service: proceed to the next step.
- If market rent of $1,515 is above FMR: consider the slight premium when pricing non-Section 8 units.
  - If rental demand is high due to the 11.6% renters and quick DOM: the answer is Yes, buy here for Section 8. There is enough demand to support the investment.
  - If DOM data is missing or indicates slow turnover: the answer is It Depends. High renter percentage suggests some demand, but without DOM data, it's hard to predict profitability.
- If market rent is at or below FMR: the answer is No. There isn't enough margin to justify the purchase for both Section 8 and market-rate rentals.
If FMR does not cover debt service: the answer is No. It's financially unwise to invest in a property where the rent cannot meet basic financial obligations.

Ultimately, the decision to buy in ZIP 85735 hinges on the ability of the FMR to cover debt service and the presence of strong rental demand, even if DOM data is unavailable. Landlords should also consider the potential for vacancy periods and the administrative aspects of managing Section 8 properties.

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.