Location: Apache County, AZ | Metro: Apache County, AZ
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,120 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,690 |
| 5 Bedrooms | $3,120 |
| 6 Bedrooms | $3,494 |
| 7 Bedrooms | $3,774 |
| 8 Bedrooms | $3,963 |
U.S. Census Bureau data (2024)
In ZIP code 85938, there are several risks associated with investing in properties that accept Section 8 tenants. First, consider the potential for high tenant turnover. The market rent for the area stands at $1,217, whereas the Fair Market Rent (FMR) for FY 2026 is set at $1,560. This disparity can lead to a higher rate of turnover, as tenants may prefer to move to properties where their vouchers cover a larger portion of the rent. High turnover rates can be costly, leading to increased vacancy periods and maintenance expenses.
Vacancy exposure is another significant concern. While the average number of days on market (DOM) is not available, it's important to note that vacancies can be particularly damaging in areas where the typical home value is $246,308, but the median income is only $49,684. This suggests that many residents may struggle to afford housing without assistance, which can exacerbate the impact of vacancies on an investor's cash flow.
Deferred maintenance is also a risk factor. Given the relatively high home values compared to median incomes, landlords must ensure that properties are well-maintained to avoid costly repairs down the line. Failure to maintain properties can result in penalties and loss of eligibility for the Section 8 program, further impacting the financial viability of the investment.
However, these risks are somewhat mitigated by the high concentration of renters in the area. With a renter share of 23.5%, there is likely to be strong demand for rental properties, including those that accept Section 8 vouchers. This high demand can help stabilize occupancy rates and provide a steady stream of income for landlords willing to navigate the challenges of the program.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.