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 | $1,190 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $181,443 | 0.82% | C |
| 3BR | $1,970 | $328,844 | 0.6% | F |
| 4BR | $2,180 | $352,486 | 0.62% | D |
| 5BR | $2,529 | $376,165 | 0.67% | D |
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). 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.