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 | $1,360 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,710 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,530 |
| 5 Bedrooms | $2,935 |
| 6 Bedrooms | $3,287 |
| 7 Bedrooms | $3,550 |
| 8 Bedrooms | $3,728 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,480 | $194,320 | 0.76% | D |
| 2BR | $1,710 | $257,702 | 0.66% | D |
| 3BR | $2,280 | $386,340 | 0.59% | F |
| 4BR | $2,530 | $451,246 | 0.56% | F |
| 5BR | $2,935 | $537,747 | 0.55% | F |
U.S. Census Bureau data (2024)
The renter's landscape in ZIP 85027, located in Phoenix, AZ, is characterized by a significant affordability gap. The median income in this area stands at $76,605 per year, which equates to approximately $6,384 per month. Considering the market rate for rent is set at $1,475 (ZORI), this represents roughly 23% of the monthly income. While this percentage is within the generally accepted range of 30% for housing affordability, it highlights a tight budget for residents.
In contrast, the voucher payment standard for the area, known as Fair Market Rent (FMR), is set at $1,910 for zip code 85027 in fiscal year 2024. This amount is higher than the market rate, indicating that voucher holders can potentially pay more than the average renter. However, landlords must weigh the benefits of receiving higher payments against the administrative burden and potential delays associated with voucher programs.
With 43.5% of the 39,487 population being renters, the competition among landlords is substantial. To put this into perspective, there are approximately 17,236 renters vying for available housing. Given the high number of renters and the relatively low market rate compared to the voucher payment standard, landlords have an opportunity to attract tenants willing to pay closer to the FMR level.
The takeaway for landlords considering their strategy in ZIP 85027 is clear. While cash-paying tenants are abundant, they might be constrained by the high cost of living relative to their income. Voucher tenants, on the other hand, offer a more stable and often higher rental income. Landlords should evaluate the administrative costs and time involved in accepting vouchers versus the potential increase in rental revenue and tenant stability.
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.