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 | $1,440 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,620 |
| 5 Bedrooms | $3,039 |
| 6 Bedrooms | $3,404 |
| 7 Bedrooms | $3,676 |
| 8 Bedrooms | $3,860 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,790 | $289,888 | 0.62% | D |
| 3BR | $2,360 | $356,474 | 0.66% | D |
| 4BR | $2,620 | $403,661 | 0.65% | D |
| 5BR | $3,039 | $460,984 | 0.66% | D |
U.S. Census Bureau data (2024)
Phoenix 85041 is largely a residential suburban enclave in the southern part of the city, characterized by a mix of established single-family neighborhoods and expanding retail corridors. The area offers a quieter pace compared to downtown but maintains convenient access to major arterial roads. Local employment is supported by the presence of major logistics and distribution hubs, with Amazon maintaining a significant fulfillment center in the vicinity, which provides steady jobs for local residents.
From a numerical standpoint, the investment picture reveals a distinct divergence between subsidized and market rates. The FY2026 Fair Market Rent for a 2-bedroom unit is set at $1,670, whereas the current market rent (Zillow ZORI) sits significantly higher at $2,178. This creates a substantial monthly gap of $508, meaning voucher tenants effectively pay below market rate. The median home value is $367,989, with a specific 2-bedroom median sale price of $290,278. Homes are moving relatively slowly, with a median days on market of 57 days.
The tenant pool is anchored by a median household income of $75,301, suggesting that while many residents can afford market rates, the 27.5% renter share indicates a solid population of non-homeowners. For voucher holders, the neighborhood offers practical amenities, including access to the Valley Metro bus system for commuting. Local schools within the Roosevelt Elementary District and nearby high schools generally serve the community, though families often prioritize the neighborhood's affordability over top-tier academic ratings.
Based on the data, the strongest investor angle in 85041 is cash flow, provided acquisition costs are managed aggressively. The $290,278 median entry point for a 2-bedroom property is low enough that a $1,670 Section 8 payment can still cover debt service and expenses comfortably, despite the $508 discount to market rent. Investors should not expect rapid appreciation given the 57-day DOM, but the subsidized income offers a defensive floor against market volatility in this southern Phoenix sector.
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.