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 | $1,150 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,440 | $255,893 | 0.56% | F |
| 3BR | $1,910 | $429,760 | 0.44% | F |
| 4BR | $2,120 | $841,739 | 0.25% | F |
| 5BR | $2,459 | $1,235,742 | 0.2% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 85021, located in Phoenix, AZ, does not work favorably for landlords. The Fair Market Rent (FMR) for the area set at $1570 for fiscal year 2024 is significantly higher than the actual market rent, which stands at $1,199 according to ZORI. This disparity suggests that landlords might struggle to charge the FMR due to lower market expectations.
Acquisition in this ZIP code is moderately affordable. With a median home value of $437,781, it's clear that purchasing properties is within reach for many investors. Additionally, the average days on market (DOM) of 40 indicates a brisk sales pace, suggesting that homes are selling quickly once listed. However, the low price-cut share of 0.4% implies that sellers generally do not need to reduce their asking prices, which could mean that buyers are willing to pay closer to the asking price, maintaining property values.
Tenant demand in ZIP 85021 is robust. The population of 39,828, combined with a substantial 60.6% renter share, points to a healthy pool of potential tenants. This high percentage of renters suggests strong demand for rental properties, which is beneficial for landlords looking to fill vacancies.
Overall, while the rent math presents a challenge due to the significant gap between FMR and market rent, the acquisition process is relatively straightforward and affordable. The strong tenant demand offers a positive outlook for occupancy rates. Landlords and small-portfolio investors should carefully consider these factors before entering the ZIP 85021 market, focusing on competitive pricing and quick acquisitions to maximize returns.
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.