Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,190 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,180 |
| 5 Bedrooms | $2,529 |
| 6 Bedrooms | $2,832 |
| 7 Bedrooms | $3,059 |
| 8 Bedrooms | $3,212 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 85019 in Phoenix, Arizona, for fiscal year 2024 is set at $1570. This figure represents the payment standard for Section 8 housing vouchers, meaning that if you participate in the program, you will receive up to $1570 per month from the government to cover a tenant's rent. It is important to note that this is not the amount you can charge as rent; it is the maximum reimbursement for the voucher.
In comparison, the local Zillow Observed Rental Index (ZORI) for the same area is $1,674. This indicates that the market rent slightly exceeds the Section 8 payment standard, suggesting that landlords participating in the program might need to adjust their expectations regarding rental income. However, the demand for rentals remains strong, with 45.8% of residents being renters. This high percentage of renters signals a robust market for rental properties, including those that accept Section 8 vouchers.
The median home value in ZIP 85019 is approximately $325,405. This figure helps potential investors understand the acquisition cost of a property in this area. Given the local rental market dynamics, it is crucial to ensure that your property's rent is competitive yet feasible under the Section 8 program. The difference between the ZORI and the FMR suggests that you should aim to acquire a property where the monthly costs do not exceed the $1570 limit, to avoid financial strain.
Before making a decision to enter the Section 8 rental market, verify that your property meets all the necessary criteria for the program. This includes ensuring that the rent does not exceed the FMR and that the unit passes a Housing Quality Standards (HQS) inspection. These steps are essential to guarantee compliance and smooth operation within the program.
Data Sources: FMR data from HUD (2027). 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.