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 | $1,640 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $2,040 |
| 3 Bedrooms | $2,690 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,040 | $491,969 | 0.41% | F |
| 3BR | $2,690 | $662,683 | 0.41% | F |
| 4BR | $2,990 | $825,986 | 0.36% | F |
| 5BR | $3,468 | $1,287,248 | 0.27% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP 85028, Phoenix, AZ, are significant. Tenant turnover is a critical issue, as the market rent stands at $3,002, whereas the Fair Market Rent (FMR) for FY 2024 is set at $2,170. This substantial gap means that tenants receiving vouchers might struggle to afford additional costs beyond the subsidized amount, leading to frequent moves and higher vacancy rates. The average days on market (DOM) for vacant properties in this area is 17 days, indicating a relatively quick turnover but also suggesting a high risk of vacancy exposure. Landlords must be prepared for periods where their units remain unoccupied, reducing rental income.
Deferred maintenance is another concern. With a typical home value of $705,574 and a median income of $125,054, many homeowners may find it challenging to keep up with property upkeep, especially if they are relying on voucher income which is lower than market rent. This financial strain can result in properties falling into disrepair, increasing the need for landlords to invest in repairs and maintenance to meet housing quality standards required by the Section 8 program.
However, these risks are balanced by the high concentration of renters in the area. ZIP 85028 boasts a 17.3% renter share, which is indicative of strong demand for rental properties. High renter density typically translates into a robust pool of Section 8 voucher holders looking for housing, thus providing a steady stream of potential tenants. The demand for affordable housing in this area ensures that landlords who are willing to participate in the Section 8 program will likely have a consistent number of applicants.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.