Location: Tucson, AZ | Metro: Tucson, AZ MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,380 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $3,120 |
| 5 Bedrooms | $3,619 |
| 6 Bedrooms | $4,053 |
| 7 Bedrooms | $4,377 |
| 8 Bedrooms | $4,596 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,980 | $326,172 | 0.61% | D |
| 3BR | $2,740 | $363,821 | 0.75% | D |
| 4BR | $3,120 | $444,135 | 0.7% | D |
| 5BR | $3,619 | $532,395 | 0.68% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 85743 in Tucson, AZ, reveals several key points for potential Section 8 landlords and small-portfolio investors.
First, the rent math does work favorably for landlords. The Fair Market Rent (FMR) for 2024 is set at $1,880, which is slightly higher than the market rent of $1,775 as indicated by ZORI. This means that landlords participating in the Section 8 program can expect a modest increase in rental income compared to the local market average.
Second, acquisition in this area is affordable. With a median home value of $397,732, the cost of entering the market is reasonable. Additionally, the days on market (DOM) is 62 days, suggesting that homes are selling relatively quickly. The low price-cut share of 0.3% indicates that homes are being sold close to their asking price, which is beneficial for both buyers and sellers.
Third, there is sufficient tenant demand. The population of 85743 is 31,300, with a 13.7% renter share. This translates to approximately 4,300 renters in the area, providing a stable pool of potential tenants for landlords.
Verdict: ZIP code 85743 presents a favorable investment opportunity for Section 8 landlords and small-portfolio investors. The slightly elevated FMR compared to market rents ensures a positive cash flow. Affordable acquisition costs, coupled with quick sales and minimal price adjustments, make it an attractive market entry point. Lastly, the presence of a significant number of renters supports sustained tenant demand, making the area viable for long-term investment.
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.