Section 8 Fair Market Rent (FMR) for ZIP 85043 - 2027

Investment Score for ZIP 85043

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	$1,370
1 Bedroom	$1,470
2 Bedrooms	$1,710
3 Bedrooms	$2,260
4 Bedrooms	$2,500
5 Bedrooms	$2,900
6 Bedrooms	$3,248
7 Bedrooms	$3,508
8 Bedrooms	$3,683

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,710	$253,768	0.67%	D
3BR	$2,260	$353,934	0.64%	D
4BR	$2,500	$391,602	0.64%	D
5BR	$2,900	$452,285	0.64%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85043 (Phoenix, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 85043 in Phoenix, Arizona, for 2026 is set at $1830 for a two-bedroom unit. This represents 28.1% of the median household income in the area, which stands at $78,257. The FMR is intended to reflect the average rent that voucher holders can afford, but it often falls short of actual rental costs in the market. Actual rents in the area are significantly higher than the FMR. For instance, the Zillow median price for a two-bedroom unit is $250,298, which translates to a monthly mortgage payment of approximately $1,290 assuming a 30-year fixed-rate mortgage at 5%. However, property taxes, insurance, and maintenance costs would need to be added to this figure to determine the total cost of ownership. When considering these additional expenses, the total monthly cost could easily exceed the FMR of $1830. Therefore, voucher holders face significant constraints in finding affordable housing within the parameters of their vouchers. #### Affordability & Renter Profile ZIP code 85043 has a population of 41,331, with 34.4% of residents being renters. The occupancy rate is high at 97.3%, indicating a tight rental market where demand is likely outpacing supply. Given the median household income of $78,257, the rent burden for voucher holders is considerable. A two-bedroom unit at the FMR of $1830 represents nearly 30% of the median income, which is a substantial portion of a household’s budget. The price-to-FMR ratio for a two-bedroom unit is 11.4x, meaning that the median home value is more than eleven times the FMR. This suggests that the area is relatively expensive compared to what voucher holders can afford. The high occupancy rate and the large percentage of renters indicate that there is strong competition for available units, making it difficult for low-income families to find suitable housing without assistance. #### Investor Angle From an investor perspective, the ZIP code 85043 offers mixed opportunities. The FMR for a two-bedroom unit is $1830, which is significantly lower than the actual median rent. However, the high occupancy rate and strong demand suggest that rental properties can command higher rents. To assess whether this ZIP code is cash-flow positive at FMR, we must consider the total cost of ownership. Assuming a purchase price of $250,298 for a two-bedroom unit, the monthly mortgage payment would be around $1,290. Adding property taxes (approximately $200 per month), insurance ($100 per month), and maintenance costs ($150 per month) brings the total monthly cost to about $1,740. At the FMR of $1830, the net positive cash flow would be $90 per month, which is minimal. However, given the strong demand and the potential to charge above FMR, investors might find better returns by targeting tenants who do not rely solely on vouchers. The investment grade for this ZIP code would be moderate, with the caveat that relying solely on FMR might not yield significant profits. #### Specific Actionable Insights 1. **Target Above FMR**: Investors should consider targeting tenants who can pay above the FMR. Given the strong demand and high occupancy rates, charging slightly over $1830 could improve cash flow significantly. For example, setting the rent at $2000 for a two-bedroom unit would provide a net positive cash flow of $260 per month, assuming the same cost structure as above. 2. **Focus on Efficiency**: Given the high price-to-FMR ratio, investors should focus on maximizing efficiency in their investments. This includes minimizing operating costs through effective management practices and ensuring that properties are well-maintained to attract higher-paying tenants. #### Bottom Line For Section 8-focused investors, the recommendation is to **Skip** this ZIP code due to the minimal cash flow at FMR levels and the high cost-to-value ratio. However, for investors willing to target a broader tenant base and charge above FMR, the ZIP code could be considered **Hold**, with the potential to generate better returns through strategic pricing and efficient management.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.