Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, 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 | $1,080 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,170 | $293,749 | 0.4% | F |
| 2BR | $1,380 | $399,454 | 0.35% | F |
| 3BR | $1,870 | $471,671 | 0.4% | F |
| 4BR | $2,120 | $530,748 | 0.4% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 85006, Phoenix, AZ, reveals a market that is currently stable but poised for change. With a median home value of $413,843, the area reflects a balance between affordability and desirability. The fact that only 0.3% of listings have reduced their asking prices indicates a seller's market where pricing power remains strong. Additionally, the median days on market (DOM) at 41 days suggests that homes are selling relatively quickly, further supporting the notion that demand exceeds supply.
For landlords and small-portfolio investors, the rent-side dynamics present an interesting opportunity. The Fair Market Rent (FMR) for ZIP 85006 in fiscal year 2024 is set at $1,570, while the current market rent, as measured by ZORI, stands at $1,342. This gap signals potential for rental income growth, as landlords can gradually adjust rents upwards to align with the FMR without risking vacancy rates, given the strong demand for housing in the area.
The setup implied by these figures suggests that long-hold investors in ZIP 85006 can expect steady appreciation. However, the realistic appreciation thesis is tempered by the low percentage of price reductions and quick sales times. These factors indicate that while there is room for appreciation, it will likely be gradual rather than explosive. The current market conditions support maintaining properties at or slightly above the median home value, ensuring that they remain competitive and attractive to buyers.
In summary, ZIP 85006 presents a balanced market environment where both home values and rental incomes are likely to grow incrementally over the next 12 to 24 months. Landlords and investors should focus on optimizing property values and rental yields to take advantage of the ongoing demand for housing in Phoenix, AZ.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.