Section 8 Fair Market Rent (FMR) for ZIP 85007 - 2027

Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA

Investment Score for ZIP 85007

Monthly Rent (2BR)

$1,380

Median Price (2BR)

$400,248

1% Rule

0.34%

Annual Yield

4.14%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,380	$400,248	0.34%	F
3BR	$1,870	$490,322	0.38%	F
4BR	$2,120	$636,392	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

13,575

Median Household Income

$63,616

Housing Units

5,929

Renter Percentage

54.2%

Occupancy Rate

86.8%

Renter Occupied

2,789

The ZIP code 85007, located in Phoenix, Arizona, offers a vibrant urban environment with easy access to downtown amenities, public transportation, and key employment centers. This area is characterized by a mix of residential neighborhoods, commercial spaces, and multifamily housing, making it attractive for both renters and small-portfolio investors.

The Fair Market Rent (FMR) for ZIP 85007 in fiscal year 2024 is set at $1,570. This figure represents the maximum amount that a household receiving rental assistance through Section 8 can be charged per month for a standard unit, indicating the price ceiling for subsidized rentals.
The market rent, as measured by the Zillow Observed Rent Index (ZORI), stands at $1,299. This metric reflects the actual rents being paid by tenants in the area, suggesting that landlords could potentially charge slightly above this average to stay competitive but within reasonable limits.
The median home value in ZIP 85007 is $411,179. This figure is indicative of the overall real estate market health and can influence property investment decisions, particularly when considering the resale value of single-family homes.
Renters make up 54.2% of the population in this ZIP code, highlighting a strong demand for rental properties. This high renter share suggests that multifamily investments or rental units might perform well in this area.
The median income for residents in 85007 is $63,616. This economic indicator helps gauge the affordability of housing for local residents and informs on the potential tenant pool's ability to pay higher rents.

In summary, ZIP 85007 presents a balanced market for rental properties, with a strong demand for rentals and a median income level that supports modest rent increases. The Fair Market Rent provides a benchmark for subsidized housing, while the ZORI indicates the prevailing market rates. Investors should consider these factors when evaluating the potential returns on multifamily or rental investments in this area. The median home value also suggests that there is a solid foundation for property appreciation, although it may not be as significant as in other parts of Phoenix.

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.