Section 8 Fair Market Rent (FMR) for ZIP 85737 - 2027

Investment Score for ZIP 85737

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

Investment Analysis by Bedroom Size

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

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To decide if you should buy in ZIP code 85737 (Oro Valley, AZ) for Section 8, follow this decision tree:

• If your answer to the first question is yes: Does the Fair Market Rent (FMR) of $1980 for fiscal year 2024 cover the debt service on a property valued at $496,901? If the FMR of $1980 clears the debt service, then you can proceed to the next step.
• If your answer is no: The FMR of $1980 does not cover the debt service on a property valued at $496,901. This makes it financially unviable to invest in this area for Section 8 purposes. You should look elsewhere.

Next Question: Is the market rent of $1,719 (ZORI) above, at, or below the FMR of $1980?

• If it's above: The ZORI of $1,719 is below the FMR of $1980. This suggests that the market rent is lower than what the government will pay, making Section 8 properties potentially more attractive than market-rate rentals.
• If it's at or near: The ZORI of $1,719 is close to the FMR of $1980. This indicates that the market rent is nearly equal to the government payment, which could still make Section 8 investments viable depending on other factors such as demand and vacancy rates.
• If it's below: The ZORI of $1,719 is below the FMR of $1980. While this means you could earn more from Section 8 tenants than from market-rate tenants, it also suggests that the local rental market might be less profitable overall.

Final Question: Are 24.1% renters combined with a 36-day Days on Market (DOM) sufficient to meet demand?

• If yes: The 24.1% rental rate and a DOM of 36 days indicate moderate demand. This combination could support a Section 8 investment, especially given that the FMR covers debt service and is higher than market rent.
• If no: A DOM of 36 days suggests a reasonable time frame for finding tenants, but the 24.1% rental rate is relatively low. This implies limited demand, making it harder to fill vacancies consistently with Section 8 tenants.
• If it depends: The 24.1% rental rate is not high, but a DOM of 36 days shows that properties are rented out relatively quickly. You must weigh these factors against the financial viability determined by the previous questions. If the FMR comfortably exceeds the debt service and market rent is below FMR, then the moderate demand could still support an investment.

In summary, the key points are: the FMR must cover debt service, market rent should be below FMR, and there should be enough demand to keep units filled. ZIP 85737 meets some criteria but demand remains a critical factor.

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.