Section 8 Fair Market Rent (FMR) for ZIP 85015 - 2027

Investment Score for ZIP 85015

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	$1,120
1 Bedroom	$1,210
2 Bedrooms	$1,410
3 Bedrooms	$1,880
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
1BR	$1,210	$145,714	0.83%	C
2BR	$1,410	$224,280	0.63%	D
3BR	$1,880	$378,565	0.5%	F
4BR	$2,120	$424,510	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85015 (Phoenix, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 85015 in Phoenix, Arizona, as of 2026, are as follows: - 0BR: $1240 - 1BR: $1340 - 2BR: $1560 (which is 34.1% of the median household income) - 3BR: $2080 - 4BR: $2350 These FMRs represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, the actual rental market in 85015 presents a different picture. The Zillow median price for a 2BR property is $228,357, which translates to a monthly mortgage payment of approximately $1,030 assuming a 30-year fixed-rate mortgage at a 4.5% interest rate. This figure does not include property taxes, insurance, and maintenance costs, which would increase the total monthly cost significantly. Given the high Price-to-FMR ratio of 12.2x, it is evident that the actual rental rates in the area far exceed the FMRs set by HUD. For instance, a 2BR unit priced at $228,357 would likely have a rental rate much higher than the $1560 FMR. This creates a significant constraint for voucher holders, who may struggle to find suitable housing within their budget. #### Affordability & Renter Profile ZIP code 85015 has a population of 41,490, with a median household income of $54,874. A substantial 65.4% of residents are renters, indicating a robust demand for rental properties. The occupancy rate stands at 89.9%, suggesting that the market is relatively tight, with few vacant units available. The high percentage of renters and the fact that 2BR units cost 34.1% of the median income indicate that the majority of residents are low to moderate-income earners. This demographic is heavily reliant on affordable housing options, such as those supported by Section 8 vouchers. However, the disparity between the FMR and actual rental rates means that many voucher holders may face challenges in securing housing that meets their needs and budget. #### Investor Angle From an investor’s perspective, the ZIP code 85015 offers mixed opportunities. While the median home price of $228,357 might seem attractive, the actual cash flow potential is constrained by the FMR limits. For example, a 2BR unit could potentially be rented out for $1560 per month under the FMR guidelines, but this is well below the typical rental rates in the area. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the total costs involved in owning and renting out a property. Assuming a 2BR unit with a purchase price of $228,357, a mortgage payment of $1,030, plus an estimated $300 for property taxes, $100 for insurance, and $100 for maintenance, the total monthly cost would be around $1,530. This exceeds the $1560 FMR limit, making it challenging for investors to achieve positive cash flow solely through Section 8 tenants. The investment grade for this ZIP code is moderate to low due to the high costs relative to the FMR. Investors looking to enter this market should carefully evaluate their financial models and consider alternative strategies to mitigate risks. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high costs of larger units and the tight rental market, investors might benefit from focusing on smaller units like 0BR or 1BR apartments. These units typically have lower FMR limits but can still command reasonable rental rates in a tight market. For instance, a 0BR unit with an FMR of $1240 might still generate a positive cash flow if the mortgage and other costs are kept low. 2. **Consider Non-Section 8 Tenants**: Due to the high Price-to-FMR ratio, investors should consider diversifying their tenant base beyond just Section 8 voucher holders. This could involve targeting moderate-income renters who do not rely on government assistance, thereby allowing for higher rental rates. 3. **Utilize Renovation Strategies**: Investors could look into purchasing older, less expensive properties and renovating them to meet modern standards while keeping the total investment within the FMR limits. This strategy could help in achieving positive cash flow and attracting both Section 8 and non-voucher tenants. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 85015 is to **Skip** this market. The high costs associated with property ownership and the tight rental market make it difficult to achieve positive cash flow while adhering to FMR guidelines. Investors should consider areas with lower Price-to-FMR ratios or explore alternative investment strategies that do not solely rely on Section 8 vouchers.

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.