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 | $1,300 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,430 |
| 5 Bedrooms | $2,819 |
| 6 Bedrooms | $3,157 |
| 7 Bedrooms | $3,410 |
| 8 Bedrooms | $3,581 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,420 | $205,924 | 0.69% | D |
| 2BR | $1,640 | $313,666 | 0.52% | F |
| 3BR | $2,190 | $562,119 | 0.39% | F |
| 4BR | $2,430 | $760,155 | 0.32% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord investing in ZIP code 85014 in Phoenix, AZ, are significant. First, tenant turnover poses a substantial challenge. The market rent for the area stands at $1,486, whereas the Fair Market Rent (FMR) for FY 2024 is set at $1,860. This discrepancy can lead to higher tenant turnover, as vouchers may not cover the full market rent, making it difficult for tenants to afford the difference.
Vacancy exposure is another critical concern. With an average Days on Market (DOM) of 32 days, landlords may face periods where their properties are unoccupied, leading to lost rental income. In ZIP 85014, the typical home value is around $450,539, while the median household income is only $66,731. This gap suggests that many residents may struggle to afford maintenance costs, potentially increasing the need for deferred maintenance, which can be costly and time-consuming for landlords.
Despite these risks, there are factors that mitigate them. The renter share in the area is 60.1%, indicating a high concentration of renters. High renter density typically translates into higher demand for housing vouchers, meaning that landlords in this area are likely to have a steady stream of qualified tenants. Additionally, the strong demand for rentals can help offset the risks associated with vacancy and turnover, as landlords are more likely to find tenants willing to use their vouchers to pay for housing.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.