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 | $1,220 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,420 |
| 4 Bedrooms | $2,750 |
| 5 Bedrooms | $3,190 |
| 6 Bedrooms | $3,573 |
| 7 Bedrooms | $3,859 |
| 8 Bedrooms | $4,052 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,750 | $452,252 | 0.39% | F |
| 3BR | $2,420 | $585,841 | 0.41% | F |
| 4BR | $2,750 | $737,157 | 0.37% | F |
| 5BR | $3,190 | $927,221 | 0.34% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Section 8 properties in ZIP code 85749, Tucson, AZ, might raise several valid concerns. Let's address them head-on using the available data.
Will FMR $1620 (zip FY 2024) cover the mortgage on a $649,158 home?
The Fair Market Rent (FMR) for ZIP 85749 is set at $1620 for fiscal year 2024. This figure represents the average rent that a Section 8 tenant could pay. However, it does not directly correlate to covering the mortgage on a $649,158 home. The typical monthly mortgage payment for a property of this value would be significantly higher, depending on interest rates and loan terms. To secure a property at this price point, additional income sources or a lower-cost property must be considered.
Is there enough renter demand at 14.5%?
The percentage of renter-occupied housing units in ZIP 85749 stands at 14.5%. This statistic alone suggests a relatively low demand for rental properties compared to owner-occupied homes. However, this does not necessarily indicate a lack of opportunity. In areas with high homeowner occupancy, the competition among rental properties can be fierce, but the quality and condition of the rentals often play a significant role. If a Section 8 property is well-maintained and located in a desirable area, it could still attract tenants effectively. Moreover, the demand for affordable housing can be steady, making Section 8 properties a reliable investment.
Will vouchers keep pace with $1,676 market rents?
The market rent in ZIP 85749 is reported at $1,676. While the Housing Choice Voucher program aims to cover a substantial portion of market rents, it is not guaranteed to match the exact amount. The voucher program typically covers the difference between what a tenant can afford and the rent of a modest apartment, usually up to a certain limit. In this case, if the FMR is $1620, landlords might find themselves subsidizing the remaining amount. This risk is mitigated by the fact that the federal government adjusts FMRs annually based on local market conditions, ensuring some level of alignment with actual rents.
Investing in Section 8 properties requires a thorough understanding of local housing markets and the financial implications of government assistance programs. While the data provides insights into the potential challenges, it also highlights opportunities for those willing to navigate the complexities of affordable housing investments.
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.