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 | $412,772 | 0.51% | F |
| 3BR | $2,920 | $510,037 | 0.57% | F |
| 4BR | $3,320 | $645,506 | 0.51% | F |
| 5BR | $3,851 | $630,676 | 0.61% | D |
U.S. Census Bureau data (2024)
The Oro Valley, AZ area, specifically ZIP code 85755, presents an interesting opportunity for Section 8 investors. The HUD Fair Market Rent (FMR) for FY 2024 is set at $2,010, which is notably lower than the Zillow Observed Rent Index (ZORI) of $2,614. This discrepancy means that voucher tenants will generally only cashflow at FMR in premium units, not in the average rental properties available in the market.
To understand the dynamics better, consider the median home value in the area, which stands at $513,212. Using this figure, we can derive the rent-to-price ratio. With a monthly rent of $2,614, the annual rent would be approximately $31,368, leading to a rent-to-price ratio of about 6.11%. This ratio suggests that the cost of renting is relatively low compared to the cost of buying, making it less likely for potential homeowners to choose renting over purchasing. However, the 50-day median Days on Market (DOM) and a 0.3% price-cut share indicate a stable market where homes are selling quickly and without significant discounts, which could influence the decision-making process of potential buyers.
In conclusion, while Oro Valley offers a strong cashflow potential for premium units, the overall market leans towards stability and quick sales for property owners. For investors, the most compelling angle is likely the appreciation potential, given the area's growing population and limited supply of affordable housing options, which can drive up property values over time.
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.