Section 8 Fair Market Rent (FMR) for ZIP 85022 - 2027

Investment Score for ZIP 85022

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	$1,420
1 Bedroom	$1,530
2 Bedrooms	$1,790
3 Bedrooms	$2,380
4 Bedrooms	$2,640
5 Bedrooms	$3,062
6 Bedrooms	$3,429
7 Bedrooms	$3,703
8 Bedrooms	$3,888

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	$1,530	$191,496	0.8%	D
2BR	$1,790	$292,054	0.61%	D
3BR	$2,380	$455,288	0.52%	F
4BR	$2,640	$643,753	0.41%	F
5BR	$3,062	$870,579	0.35%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85022 (Phoenix, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 85022 is set by HUD for 2026, with specific rates for different bedroom sizes. For a two-bedroom unit, the FMR is $1,980, which represents 34.0% of the median household income in the area. This FMR is significantly lower than the actual rental prices in the market. According to Zillow, the median price for a two-bedroom home is $298,953, translating to a monthly mortgage payment of approximately $1,400 based on typical financing terms. However, the actual rental rate for a two-bedroom unit is around $1,980, which is still higher than what many voucher holders can afford. The constraints for voucher holders are clear: they must find units that do not exceed the FMR. In ZIP 85022, this means that a two-bedroom unit should cost no more than $1,980 per month. Given that the actual rental rates are close to this figure, it suggests that landlords who accept Section 8 vouchers might face limited profit margins. The challenge for voucher holders is finding properties that meet their needs within these budgetary constraints. #### Affordability & Renter Profile ZIP code 85022 has a population of 53,811, with 47.7% of residents being renters. The occupancy rate is high at 94.1%, indicating a tight rental market. With a median household income of $69,927, the majority of residents have the financial capacity to afford housing costs, but the significant percentage of renters suggests that many are looking for affordable options. The affordability of housing in this ZIP code is a concern given the high price-to-FMR ratio of 12.6x. This means that the median home value is over 12 times the FMR for a two-bedroom unit. For renters, especially those relying on Section 8 vouchers, this makes finding suitable accommodation challenging. The high occupancy rate further exacerbates the issue, as it leaves fewer available units for voucher holders. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers cash-flow positive opportunities at the FMR. Given the FMR for a two-bedroom unit is $1,980, and the actual rental rate is also around $1,980, there is little room for profit unless the property is acquired at a below-market price or has low operating costs. To assess the investment grade, we need to consider the potential for long-term appreciation and stability. The high occupancy rate and significant renter population suggest that demand for rental properties is strong, which could support steady occupancy and rental income. However, the tight market and high price-to-FMR ratio indicate that the area may be less attractive for investors seeking immediate cash flow, as the rental rates are already near the FMR. #### Specific Actionable Insights 1. **Focus on Below-Market Properties:** Investors should look for properties that can be acquired at a discount or renovated to improve efficiency and reduce maintenance costs. This could help achieve a positive cash flow even at the FMR. For instance, a two-bedroom unit priced at $1,980 would require acquisition and operational costs to be below this amount to ensure profitability. 2. **Consider Smaller Units:** Given the high price-to-FMR ratio, smaller units such as one-bedroom apartments might offer better cash flow opportunities. The FMR for a one-bedroom unit is $1,700, which is still competitive in the market but provides a slightly wider margin for profit. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 85022 is to **Skip**. The high price-to-FMR ratio and tight rental market make it difficult to achieve positive cash flow without significant discounts or cost reductions. Additionally, the strong demand for rental properties suggests that competition for tenants will be fierce, potentially leading to longer vacancy periods and reduced profitability. In summary, while ZIP 85022 presents a robust rental market with high occupancy and a substantial renter population, the alignment between actual rental prices and FMRs is too close to provide a viable investment opportunity for those strictly focusing 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.