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 | $1,230 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $328,592 | 0.47% | F |
| 3BR | $2,030 | $344,195 | 0.59% | F |
U.S. Census Bureau data (2024)
The ZIP code 85034 in Phoenix, AZ stands out within Maricopa County due to its unique demographic and economic characteristics. With a total of 4,854 residents, 77.5% of whom are renters, this area has a strong rental market. The median income for households in 85034 is $63,559, which is relatively modest compared to the median home value of $281,455. This suggests that homeownership is less attainable for many residents, further reinforcing the reliance on rentals.
Moving into the specifics of Section 8 economics, the Fair Market Rent (FMR) for the ZIP code for fiscal year 2024 is set at $1,640. In contrast, the Zillow Rent Index (ZORI), which reflects the average market rent, is $1,362. This gap indicates that landlords participating in the Section 8 program can expect higher rents compared to the general market, making it an attractive option for those seeking stable rental income. However, it's important to note that the FMR rate is subject to annual adjustments based on HUD guidelines, so landlords should be prepared for potential changes in future years.
Evaluating the overall data signature of ZIP 85034, it reads as stable. The high percentage of renters and the established median home value suggest a consistent demand for rental properties. Moreover, the disparity between the FMR and ZORI provides a financial incentive for landlords to consider the Section 8 program. For small-portfolio investors, this ZIP code presents a reliable investment opportunity with predictable returns, especially through the Section 8 voucher program.
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.