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 | $1,230 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,440 |
| 4 Bedrooms | $2,770 |
| 5 Bedrooms | $3,213 |
| 6 Bedrooms | $3,599 |
| 7 Bedrooms | $3,887 |
| 8 Bedrooms | $4,081 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,760 | $246,724 | 0.71% | D |
| 3BR | $2,440 | $351,937 | 0.69% | D |
| 4BR | $2,770 | $422,738 | 0.66% | D |
| 5BR | $3,213 | $579,463 | 0.55% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 85748, located in Tucson, Arizona, reveals several key insights for landlords and small-portfolio investors.
First, let's examine whether the rent math works. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,680, while the market rent, as measured by the Zillow Observed Rent Index (ZORI), stands at $1,906. This indicates that landlords can expect to charge a premium over the FMR, suggesting that the rent math does indeed work in their favor.
Second, we need to assess if acquisition is affordable. With a median home value of $374,228, the cost of purchasing property in this ZIP code is relatively high. However, the average days on market (DOM) of 29 days and a low price-cut share of 0.3% suggest that homes sell quickly without needing significant price reductions. These factors indicate that while the initial investment is substantial, the market conditions support quick turnover and minimal negotiation.
Lastly, there is a notable tenant demand. The population of 20,103 residents includes a significant renter share of 23.9%. This means that nearly one-quarter of the residents are likely seeking rental properties, providing a steady pool of potential tenants for landlords.
In conclusion, ZIP 85748 presents a favorable environment for landlords and small-portfolio investors. The rent math works, allowing for a $226 per unit premium over the FMR. Acquisition, though costly, is supported by rapid sales and little need for price adjustments. Additionally, the significant renter share ensures a consistent demand for rental properties. These factors collectively make 85748 a promising investment opportunity.
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.