Section 8 Fair Market Rent (FMR) for ZIP 85742 - 2027

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

Investment Score for ZIP 85742

D
Monthly Rent (2BR)
$2,010
Median Price (2BR)
$309,995
1% Rule
0.65%
Annual Yield
7.78%

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$1,400
1 Bedroom$1,560
2 Bedrooms$2,010
3 Bedrooms$2,780
4 Bedrooms$3,160
5 Bedrooms$3,666
6 Bedrooms$4,106
7 Bedrooms$4,434
8 Bedrooms$4,656

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
2BR $2,010 $309,995 0.65% D
3BR $2,780 $352,483 0.79% D
4BR $3,160 $439,575 0.72% D
5BR $3,666 $600,874 0.61% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
31,613
Median Household Income
$98,844
Housing Units
13,003
Renter Percentage
19.4%
Occupancy Rate
97.7%
Renter Occupied
2,466

The Fair Market Rent (FMR) for ZIP code 85742 in Tucson, Arizona, for fiscal year 2024 is set at $1820. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. It's important to note that this is not the rent you will receive; rather, it's the benchmark used by the Housing Choice Voucher program to determine the allowable rent.

In comparison, the local Zillow Observed Rental Index (ZORI) for the same area is currently at $1,711. This means that the average market rent is slightly below the FMR, indicating that landlords participating in the Section 8 program may be receiving a rate closer to the local average when accounting for the tenant's portion of the rent.

The 19.4% share of renters in the area suggests a steady demand for rental properties. With nearly one-fifth of the population renting, there is a reliable pool of potential tenants who might benefit from the Section 8 program. This demand can translate into fewer vacancies and more consistent income for your property.

If you're considering purchasing a property to participate in Section 8, the median home value of $387,957 provides an idea of the investment required. Keep in mind that the actual acquisition cost can vary based on the condition and location of the property, but this gives you a starting point for budgeting.

Before committing to a Section 8 rental, ensure that the property meets all the necessary inspection criteria. The Housing Authority will inspect your property to make sure it adheres to the minimum housing quality standards (MQS). Pass this inspection, and you'll be well on your way to providing affordable housing while maintaining a stable income stream.

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.