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 | $1,610 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $2,030 |
| 3 Bedrooms | $2,700 |
| 4 Bedrooms | $3,000 |
| 5 Bedrooms | $3,480 |
| 6 Bedrooms | $3,898 |
| 7 Bedrooms | $4,210 |
| 8 Bedrooms | $4,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,030 | $346,090 | 0.59% | F |
| 3BR | $2,700 | $469,702 | 0.57% | F |
| 4BR | $3,000 | $590,757 | 0.51% | F |
| 5BR | $3,480 | $914,312 | 0.38% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 85044 in Phoenix, AZ, hinges on its financial metrics for the real estate market. With a Fair Market Rent (FMR) of $2,190 for the fiscal year 2024, compared to the market rent of $1,542, this area offers a notable opportunity for high yields through Section 8 properties. The disparity between FMR and market rent suggests that landlords can command higher rents through government-subsidized housing programs.
However, the stability of this market must also be considered. The median home value in ZIP 85044 stands at $480,478, which is significantly higher than the median household income of $96,820. This indicates a potential challenge for tenants to afford market-rate housing, which could lead to higher turnover rates and longer vacancy periods. Additionally, the 37.6% rental rate and an average Days on Market (DOM) of 26 days suggest a moderately stable market where rental demand is strong but not overwhelmingly so.
To summarize, ZIP 85044 leans towards being a high-yield market due to the substantial difference between the FMR ($2,190) and the market rent ($1,542), allowing landlords to benefit financially from the higher subsidized rents. However, the market's stability is somewhat compromised by the high home values relative to incomes, which might increase tenant instability and affect cash flow consistency.
Therefore, this area would best be classified as a high-yield zone with moderate stability. It presents attractive opportunities for investors willing to manage higher risks associated with tenant turnover, while still enjoying the benefits of increased rental income from Section 8 properties.
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.