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 | $1,410 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,580 |
| 5 Bedrooms | $2,993 |
| 6 Bedrooms | $3,352 |
| 7 Bedrooms | $3,620 |
| 8 Bedrooms | $3,801 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,520 | $241,951 | 0.63% | D |
| 2BR | $1,760 | $342,523 | 0.51% | F |
| 3BR | $2,320 | $881,192 | 0.26% | F |
| 4BR | $2,580 | $1,588,010 | 0.16% | F |
| 5BR | $2,993 | $2,851,150 | 0.1% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 85018 in Phoenix, Arizona, for fiscal year 2024 is set at $1810. This figure represents the payment standard for Section 8 housing vouchers, which means that if a landlord participates in the program, they will receive up to $1810 per month for renting a unit to a tenant who qualifies under Section 8. It's important to note that this is not the amount tenants will pay; it's the maximum reimbursement from the government.
In comparison, the Zillow Observed Rental Index (ZORI), which reflects typical market rents, stands at $1664. This suggests that the FMR for Section 8 is slightly above the average market rate, potentially making it an attractive option for landlords looking to ensure steady income.
With 43.6% of residents being renters, there is a significant demand for affordable housing in the area. This high percentage indicates that many individuals and families rely on rental properties, including those supported by Section 8 vouchers.
When considering the acquisition cost of a property, the median home value in ZIP 85018 is approximately $985,836. For a landlord, this means that purchasing a property to convert into a Section 8 rental can be a substantial investment. However, the long-term stability and consistent rental payments make it a viable strategy.
Before deciding to participate in the Section 8 program, landlords should verify that the property meets all necessary housing quality standards (HQS). These standards ensure the property is safe and habitable, and failure to meet them could result in reduced payments or eviction of the tenant.
To summarize, the FMR of $1810 provides a reliable income stream for landlords, slightly exceeding the local market rate of $1664. The significant 43.6% renter population ensures a strong demand for affordable housing. With a median home value of $985,836, the initial investment is considerable, but the benefits include stable tenancy and predictable monthly income. Landlords must ensure their property complies with HQS to avoid issues.
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.