Section 8 Fair Market Rent (FMR) for ZIP 85009 - 2027

Investment Score for ZIP 85009

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	$247,691	0.56%	F
3BR	$1,870	$297,398	0.63%	D
4BR	$2,120	$327,231	0.65%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85009 (Phoenix, AZ) #### Section 8 Voucher Dynamics In ZIP code 85009, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1530 per month for the year 2026. This figure represents 35.3% of the median household income of $52,054. The FMR is intended to reflect the average rent that a family might pay for a modest apartment in the area. However, the actual rents in the market can be significantly higher. For instance, the Zillow median price for a two-bedroom home in this ZIP is $250,398, which translates to a monthly rent of approximately $1385 if we assume a 5% rental yield. This means the actual market rent for a two-bedroom property is likely closer to $1385, which is below the FMR but still presents challenges for voucher holders. The primary constraint for voucher holders is that landlords are not obligated to accept Section 8 vouchers. Additionally, voucher holders must find properties where the rent does not exceed the FMR. Given that the occupancy rate is 94.4%, landlords have a high level of leverage in setting rents, and many may choose to rent above the FMR, making it difficult for voucher holders to find suitable housing. #### Affordability & Renter Profile ZIP code 85009 has a significant rental population, with 48.9% of households being renters. This indicates a substantial demand for rental properties. The median household income of $52,054 suggests that many residents are middle-class families who rely on affordable housing options. The price-to-FMR ratio of 13.6x for a two-bedroom unit highlights the disparity between the cost of buying a home and the rental market. This ratio implies that the median home price is about 13.6 times the FMR, indicating a relatively expensive housing market compared to rental costs. Given the high occupancy rate and the significant percentage of renters, it is clear that the market is tight. There is limited supply relative to demand, which puts upward pressure on rents and makes it challenging for low-income families to secure housing without assistance. #### Investor Angle From an investor perspective, the key question is whether the ZIP code can generate positive cash flow at the FMR levels. To determine this, we need to consider the typical expenses associated with owning and renting out a property, including mortgage payments, property taxes, insurance, maintenance, and other operating costs. Assuming a two-bedroom property priced at $250,398, with a 20% down payment, the mortgage would be around $200,318. At a 4% interest rate over a 30-year term, the monthly mortgage payment would be approximately $955. Adding typical property taxes (assuming 1% of the home value), insurance ($100/month), and maintenance ($100/month), the total monthly expenses would be around $1255. At the FMR of $1530, the net cash flow would be $275 per month, which is positive. However, this assumes that the property can be rented out at the FMR, which may not always be the case due to the tight market conditions and the potential for landlords to charge above the FMR. The investment grade for this ZIP code would be considered moderate. While there is a positive cash flow at the FMR, the risk of vacancy and the challenge of finding tenants willing to pay the FMR could affect the overall profitability. Furthermore, the high occupancy rate suggests strong demand, but also indicates that competition among landlords is fierce. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors should target properties where the rent is below the FMR, particularly for two-bedroom units. Given the Zillow median price of $250,398, a rental yield of 5% would result in a monthly rent of $1385, which is below the FMR of $1530. This strategy ensures that the property remains attractive to voucher holders while still generating positive cash flow. 2. **Consider Lower-Rent Units**: Since the FMR for a three-bedroom unit is $2070, which is 39.8% of the median household income, it may be more challenging to find tenants willing to pay this amount. Instead, investors might focus on one-bedroom units, where the FMR is $1300, or even zero-bedroom units, where the FMR is $1190. These lower-rent units are more likely to attract tenants who are using Section 8 vouchers. 3. **Engage with Local Housing Authorities**: To ensure a steady stream of tenants, investors should engage with local housing authorities and become familiar with the process of accepting Section 8 vouchers. This can involve additional paperwork and inspections but can lead to a more stable tenant base. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 85009 is to **Buy** properties that are priced below the FMR, particularly those that can be rented out for less than $1530 per month for a two-bedroom unit. The tight market and high occupancy rates suggest strong demand, but investors should be prepared for the challenges of competing with non-voucher properties and ensuring compliance with housing authority requirements. Overall, the potential for positive cash flow and the affordability of the FMR make this ZIP code a viable option for such investments.

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.