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 | $1,470 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $2,110 |
| 3 Bedrooms | $2,920 |
| 4 Bedrooms | $3,320 |
| 5 Bedrooms | $3,851 |
| 6 Bedrooms | $4,313 |
| 7 Bedrooms | $4,658 |
| 8 Bedrooms | $4,891 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,110 | $329,475 | 0.64% | D |
| 3BR | $2,920 | $325,277 | 0.9% | C |
| 4BR | $3,320 | $387,487 | 0.86% | C |
| 5BR | $3,851 | $467,484 | 0.82% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 85747 in Tucson, AZ, reveals several key insights for landlords and small-portfolio investors.
The rent math does indeed work favorably. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $2010, which is slightly above the market rent indicator, ZORI, at $1938. This suggests that properties can be rented at a rate that aligns closely with government guidelines, offering a stable income stream without significant risk of overpricing.
Acquisition in this area is relatively affordable. With a median home value of $365,440, potential investors have access to a range of housing options that fit within their budget. The days on market (DOM) average at 38 days indicates a moderately active real estate market, where homes are neither staying too long on the market nor selling too quickly, suggesting a balanced environment. Additionally, the low price-cut share of 0.3% implies that homes are generally selling close to their asking price, further supporting the idea that this is an affordable market for acquisition.
Tenant demand is strong in ZIP 85747. The population stands at 27,753 individuals, with a renter share of 20.5%. This means that approximately 5,700 residents are actively seeking rental housing, providing a solid base of potential tenants for landlords and investors.
In summary, ZIP 85747 offers a favorable investment climate. The rent math is aligned, making it easier to set competitive rental prices. Acquisition costs are reasonable, with homes selling close to their listed values and a moderate pace of sales. Tenant demand is robust, ensuring a steady pool of renters. These factors collectively make 85747 an attractive area for real estate investment under the Section 8 program.
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.