Section 8 Fair Market Rent (FMR) for ZIP 85756 - 2027
Location: Tucson, AZ | Metro: Tucson, AZ MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,200 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,720 |
| 5 Bedrooms | $3,155 |
| 6 Bedrooms | $3,534 |
| 7 Bedrooms | $3,817 |
| 8 Bedrooms | $4,008 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$72,490
Housing Authorities Serving ZIP 85756
To determine if you should buy in ZIP code 85756 (Tucson, AZ) for Section 8 investments, follow this decision tree:
1) Does FMR $1,610 (zip FY 2024) clear debt service on a $306,594 property?
- No: The Fair Market Rent (FMR) of $1,610 does not cover the debt service on a property valued at $306,594. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. For a property this size, the total monthly debt service would likely exceed the FMR, making it unprofitable without additional subsidies or higher-paying tenants.
2) Is market rent $1,886 (ZORI) above, at, or below FMR?
- Above: The Zillow Observed Rental Index (ZORI) of $1,886 is above the FMR of $1,610. This suggests that the market rent is higher than what Section 8 will pay, meaning landlords can expect to earn more from non-Section 8 tenants. However, this also implies that Section 8 tenants might be less desirable compared to market-rate tenants.
- At: Unlikely given the data, but if market rents were close to the FMR, it would indicate a balanced situation where Section 8 tenants could be considered alongside market-rate tenants.
- Below: Not applicable based on the provided data.
3) Are 18.9% renters + 47-day DOM enough demand?
- Yes: With 18.9% of the population renting and an average Days on Market (DOM) of 47 days, there is sufficient demand for rental properties. This indicates that properties are rented relatively quickly, which is positive for cash flow and investment returns.
- No: Insufficient demand would mean that either the percentage of renters is too low or the DOM is too high, leading to prolonged vacancy periods and lower cash flow. However, the 18.9% rental rate and 47-day DOM suggest otherwise.
- It Depends: If you are specifically targeting Section 8 tenants, consider the percentage of renters who qualify for Section 8 assistance. While the overall rental demand seems adequate, the specific demand for Section 8 units may vary. Additionally, assess how the $1,610 FMR compares to the actual rent collected from Section 8 tenants in the area.
In conclusion, for a property priced at $306,594, the FMR of $1,610 is unlikely to cover the debt service, indicating that relying solely on Section 8 tenants may not be financially viable. However, the market rent being higher at $1,886 suggests opportunities for higher-paying tenants, while the rental demand appears strong with 18.9% of the population renting and quick turnover times. Therefore, if you plan to diversify your tenant base and not exclusively rely on Section 8, ZIP 85756 could be a good investment. Otherwise, proceed with caution focusing on the financial viability of Section 8-only properties.
Data Sources: FMR data from HUD (2027). 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.