Section 8 Fair Market Rent (FMR) for ZIP 86511 - 2027

Location: Apache County, AZ | Metro: Apache County, AZ

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$730
1 Bedroom	$820
2 Bedrooms	$1,060
3 Bedrooms	$1,440
4 Bedrooms	$1,700
5 Bedrooms	$1,972
6 Bedrooms	$2,209
7 Bedrooms	$2,386
8 Bedrooms	$2,505

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

3,583

Median Household Income

$41,000

Housing Units

1,575

Renter Percentage

6.7%

Occupancy Rate

67.8%

Renter Occupied

To decide whether you should buy in ZIP code 86511 for Section 8 investments, follow this decision tree:

Does the Fair Market Rent (FMR) of $1,110 clear debt service on a property?
- If Yes: The FMR exceeds the necessary amount to cover your debt service, making the investment financially viable.
- If No: Do not proceed unless you can find properties with significantly lower costs or higher subsidies.
Is the market rent of $706 above, at, or below the FMR?
- If Above: Market rents are higher than the FMR, indicating that Section 8 tenants might struggle to find housing outside of the program, thus increasing demand for your property.
- If At or Below: There is no significant premium over the FMR, meaning that non-Section 8 tenants could also be interested in your property, potentially diversifying your tenant pool.
Are 6.7% of residents renters, with N/A days as Days on Market (DOM), sufficient demand?
- If Yes: The percentage of renters combined with the speed at which units are typically leased suggests a healthy demand for rental properties, including those that accept Section 8 vouchers.
- If No: Insufficient demand exists, and you would likely face challenges in leasing out your property to Section 8 tenants.

The Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $1,110. This figure must cover all expenses related to owning and managing a property, including mortgage payments, property taxes, insurance, maintenance, and any other associated costs. If the total debt service for a property in ZIP 86511 is less than $1,110, then the answer to the first question is a clear yes, indicating that such an investment could be profitable.

The market rent, as per the Census ACS, stands at $706, which is notably below the FMR. This gap means that landlords who rely on market rates alone might not be able to cover their expenses, but it also indicates that there is a significant portion of the market that could benefit from the additional subsidy provided by Section 8. Therefore, if your goal is to attract Section 8 tenants, the answer to the second question is a strong yes, as the subsidy would bridge the gap between market rent and the cost of debt service.

Regarding the third question, while the percentage of renters is only 6.7%, the lack of data on Days on Market (DOM) makes it challenging to provide a definitive answer. However, if historical trends show that properties are leased quickly, this could still represent a sufficient demand. Otherwise, the limited rental population might make it difficult to maintain a steady stream of Section 8 tenants.

In conclusion, if the FMR of $1,110 clears the debt service and market rent is significantly below this, then investing in ZIP 86511 for Section 8 properties is advisable. However, the success will largely depend on the actual demand for rentals, which is partially indicated by the DOM data. Without a clear DOM figure, the final decision hinges on local market conditions and the landlord's ability to manage a property efficiently.

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.