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 | $1,110 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,200 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,200 | $300,242 | 0.73% | D |
| 4BR | $2,500 | $342,541 | 0.73% | D |
| 5BR | $2,900 | $378,478 | 0.77% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 85757 reveals key insights for landlords and small-portfolio investors considering the area. Firstly, regarding the rent math, it is evident that the Fair Market Rent (FMR) set at $1,460 for the fiscal year 2024 does not align with the market's actual rent levels, which stand at $1,994 (ZORI). This discrepancy means that landlords who rely solely on FMR will likely miss out on potential rental income, as the market rent is significantly higher.
Secondly, when assessing the affordability of acquisitions, the median home value of $324,439 serves as a critical anchor. However, the lack of data on days on market (DOM) and the low percentage of homes needing price cuts (0.3%) suggest that while the median home value is high, the market is stable and homes do not typically linger unsold. This stability implies that, despite the higher costs, acquiring properties can be a reasonable investment strategy.
Lastly, concerning tenant demand, the ZIP code has a population of 21,259, with 14.8% of residents being renters. This indicates a moderate but present demand for rental properties, suggesting that landlords can expect a steady pool of potential tenants.
In summary, while the rent math based on FMR does not work in favor of landlords due to the significant gap between FMR and ZORI, the stable housing market and moderate tenant demand make 85757 a viable investment option. The high median home value should be balanced against the strong market rent, indicating potential for higher returns if priced competitively. Landlords should also be prepared to compete for tenants given the relatively low renter share of the population. Overall, the ZIP code presents opportunities for those willing to navigate the higher acquisition costs and adjust their rental pricing strategies accordingly.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.