Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,400 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,300 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
To classify ZIP 85005 in Unknown, Arizona, based on yield and stability, we need to analyze the available data. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1880. However, critical data points such as the market rent, home values, percentage of renters, days on market (DOM), and median income are not provided. This lack of comprehensive data makes it challenging to definitively categorize the ZIP code.
The FMR figure indicates the maximum rental amount that the U.S. Department of Housing and Urban Development (HUD) will subsidize through the Section 8 program. With an FMR of $1880, landlords can expect to receive this amount per unit for eligible tenants. Without knowing the market rent, it's impossible to determine if this represents a high-yield scenario. If the market rent is significantly higher than the FMR, landlords might find it more profitable to rent without the Section 8 subsidy. Conversely, if the market rent is close to or below the FMR, this ZIP could be considered a steady-cashflow zone for those willing to participate in the Section 8 program.
The absence of data regarding the percentage of renters, DOM, and median income means we cannot fully assess the stability of the market. Typically, a higher percentage of renters and shorter DOM suggest a stable market where rental properties are in demand and can be rented quickly. Similarly, higher median incomes indicate residents' ability to pay rent consistently, contributing to stability. Without these figures, we must rely on the FMR alone, which is insufficient for a complete analysis.
In conclusion, ZIP 85005 presents a clear opportunity for yield with the established FMR of $1880. However, the classification into high-yield/low-stability or steady-cashflow zones requires additional data. Landlords and investors should seek more detailed local market reports to make informed decisions about the potential risks and returns associated with this ZIP code.
Data Sources: FMR data from HUD (2027).
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.