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 | $1,330 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,430 |
| 5 Bedrooms | $2,819 |
| 6 Bedrooms | $3,157 |
| 7 Bedrooms | $3,410 |
| 8 Bedrooms | $3,581 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,660 | $137,698 | 1.21% | A |
| 3BR | $2,190 | $318,434 | 0.69% | D |
| 4BR | $2,430 | $341,227 | 0.71% | D |
| 5BR | $2,819 | $361,346 | 0.78% | D |
U.S. Census Bureau data (2024)
The ZIP code 85031 in Phoenix, AZ, presents a dynamic housing market. The Fair Market Rent (FMR) for the area is set at $1650 for the fiscal year 2024, indicating the government's benchmark for affordable rental costs. In contrast, the actual market rent, measured by Zillow's ZORI index, stands at $1,478, suggesting that the rental market is slightly below the FMR threshold.
The low price-cut share of 0.3% implies that very few properties are being discounted, which could point towards a balanced or slightly tight market where sellers have confidence in their asking prices. However, the lack of days on the market (DOM) data makes it challenging to definitively conclude whether this is due to quick sales or prolonged listing periods without reductions.
The median home value of $323,223 provides insight into the overall affordability and desirability of homes in the area. This figure suggests that homeownership remains accessible to a broad range of buyers, potentially contributing to the stability seen in the market rent and price-cut shares.
A significant 33.9% of residents in ZIP 85031 are renters. This high proportion of renters can be indicative of long-term housing pressure, as it reflects a substantial portion of the population that may struggle to enter the homeownership market. For landlords and small-portfolio investors, this means a consistent demand for rental properties, supporting the current market rent levels.
The interplay between these factors—rental market pricing, seller confidence, and high renter share—creates a market in motion. Landlords benefit from steady rental demands, while the low price-cut share signals to small-portfolio investors that the market supports property values. The high renter share points to an ongoing challenge in homeownership, which could sustain rental market dynamics over the long term.
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.