Section 8 Fair Market Rent (FMR) for ZIP 85033 - 2027

Investment Score for ZIP 85033

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	$1,170
1 Bedroom	$1,260
2 Bedrooms	$1,460
3 Bedrooms	$1,930
4 Bedrooms	$2,140
5 Bedrooms	$2,482
6 Bedrooms	$2,780
7 Bedrooms	$3,002
8 Bedrooms	$3,152

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
2BR	$1,460	$197,936	0.74%	D
3BR	$1,930	$325,800	0.59%	F
4BR	$2,140	$351,826	0.61%	D
5BR	$2,482	$365,162	0.68%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85033 (Phoenix, AZ) #### Section 8 Voucher Dynamics In ZIP code 85033, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1560 per month, which represents 29.2% of the median household income of $64,144. This indicates that the rent is relatively affordable for low-income families who might be eligible for Section 8 vouchers. However, it is important to note that the actual rents in the area can be significantly higher. According to Zillow, the median price for a two-bedroom home is $204,766, which translates to a monthly rent of approximately $1023.83 when considering a typical mortgage payment (assuming a 4% interest rate and a 30-year term). The price-to-FMR ratio of 10.9x suggests that actual rents could be much higher than the FMR, potentially making it challenging for voucher holders to find suitable housing. For instance, if a two-bedroom unit were to rent at the Zillow median price, it would cost $1023.83 in mortgage payments alone, without factoring in maintenance, utilities, and other costs, which could easily push the total rent above the FMR. #### Affordability & Renter Profile The ZIP code has a population of 57,591, with 42.5% of residents being renters. This high percentage of renters indicates a significant demand for rental properties in the area. Given the occupancy rate of 96.1%, the market appears to be quite tight, with very few vacant units available. This tight market condition makes it difficult for renters, especially those relying on Section 8 vouchers, to find affordable housing. The median household income of $64,144 suggests that many residents are middle-class or lower-middle-class individuals who might struggle to afford the higher rents that exceed the FMR. The 42.5% renter population also implies that there is a substantial segment of the community that relies on rental housing, creating a competitive environment where landlords have the upper hand in setting rent prices. #### Investor Angle From an investor perspective, the ZIP code offers potential opportunities but also challenges. At the FMR level, a two-bedroom unit renting for $1560 per month could provide positive cash flow, assuming the property is priced reasonably and the operating expenses are managed effectively. However, the price-to-FMR ratio of 10.9x indicates that the actual purchase price of properties in this area is likely to be high, which could affect the overall return on investment (ROI). To determine the investment grade, we need to consider factors such as the vacancy rate, occupancy rates, and the potential for appreciation. With a 96.1% occupancy rate, the risk of vacancy is low, which is favorable for investors. However, the high price-to-FMR ratio suggests that the ROI might be lower compared to areas with a more balanced ratio. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should look for properties that can be rented below the FMR to ensure they remain attractive to Section 8 voucher holders. For example, a two-bedroom unit renting for $1560 per month is already at the FMR limit. If possible, finding units that can be rented for less, such as $1400 or $1300, would make them more accessible to voucher holders. 2. **Consider Property Management Costs**: Given the high price-to-FMR ratio, investors must carefully manage their operating expenses to maintain positive cash flow. This includes understanding the costs associated with property management, maintenance, and utilities. For instance, if an investor buys a property for $204,766 and aims to rent it out at $1560 per month, they need to ensure that all additional costs do not exceed the rental income. 3. **Evaluate Long-Term Appreciation Potential**: While the current market conditions suggest a tight rental market, investors should also consider the long-term appreciation potential of properties in this ZIP code. High occupancy rates and a growing population could indicate strong future growth, making it a good long-term investment even if the initial ROI is modest. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors is to **Hold**. While the area presents opportunities for positive cash flow, the high purchase prices and limited availability of units renting below the FMR suggest that buying new properties might not be the most prudent decision. Instead, investors should focus on maintaining and improving existing properties to keep them within the FMR range and attractive to voucher holders. Additionally, investors should monitor the local real estate market closely for any changes in supply and demand dynamics that could affect the FMR and rental prices.

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.