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 | $2,080 |
| 1 Bedroom | $2,240 |
| 2 Bedrooms | $2,600 |
| 3 Bedrooms | $3,430 |
| 4 Bedrooms | $3,800 |
| 5 Bedrooms | $4,408 |
| 6 Bedrooms | $4,937 |
| 7 Bedrooms | $5,332 |
| 8 Bedrooms | $5,599 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,430 | $544,620 | 0.63% | D |
| 4BR | $3,800 | $696,887 | 0.55% | F |
| 5BR | $4,408 | $822,537 | 0.54% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 85045 operate under specific parameters that landlords need to understand to manage their expectations and financial planning effectively. For a two-bedroom apartment in this ZIP code, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $2,820. This figure is crucial because it represents the maximum amount that a Section 8 housing voucher can cover for rent in this specific area.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), is currently at $2,648. This indicates that the SAFMR for ZIP 85045 is slightly higher than the average market rent, which can be beneficial for landlords. However, it's important to note that the actual reimbursement to landlords will depend on the specific terms of the voucher and the tenant's portion of the rent.
A Section 8 voucher typically covers the difference between 30% of the tenant's income and the SAFMR. The tenant is responsible for paying approximately 30% of their adjusted monthly income towards rent, while the voucher program covers the remainder up to the SAFMR limit. Additionally, there are utility allowances that can vary based on the size of the unit and the location. For a two-bedroom apartment, the utility allowance might be around $300, but this can fluctuate depending on the specifics of the voucher and the region.
To illustrate, if a tenant has an adjusted monthly income of $1,000, they would pay 30% of that, or $300, towards rent. If the SAFMR is $2,820, the voucher would cover the remaining $2,520. Including a utility allowance of $300, the total reimbursement to the landlord would be $2,820. This means that landlords in ZIP 85045 could potentially receive the full SAFMR amount without any loss, assuming the tenant's portion plus the utility allowance equals the SAFMR.
In practice, however, the reimbursement might not always reach the full SAFMR due to differences in the tenant's income and the local market conditions. Given that the ZORI is lower than the SAFMR, landlords may find themselves with a surplus, where the voucher covers more than the typical market rent. In this case, the surplus for a two-bedroom unit would be approximately $172 per month, calculated as the difference between the SAFMR ($2,820) and the ZORI ($2,648).
This economic scenario suggests that landlords participating in the Section 8 program in ZIP 85045 could benefit financially, especially when considering the stability and security that comes with government-backed rental assistance.
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.