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 | $1,850 |
| 1 Bedroom | $1,990 |
| 2 Bedrooms | $2,310 |
| 3 Bedrooms | $3,050 |
| 4 Bedrooms | $3,380 |
| 5 Bedrooms | $3,921 |
| 6 Bedrooms | $4,392 |
| 7 Bedrooms | $4,743 |
| 8 Bedrooms | $4,980 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,310 | $463,190 | 0.5% | F |
| 3BR | $3,050 | $725,299 | 0.42% | F |
| 4BR | $3,380 | $960,121 | 0.35% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 85054, located in Phoenix, Arizona, and part of Maricopa County, revolve around the SAFMR (Small Area Fair Market Rent) which is specifically set for this ZIP code. For a two-bedroom apartment in FY 2024, the SAFMR is $2540. However, it's important to understand that the actual reimbursement to landlords is not simply this figure minus the tenant's portion.
The SAFMR of $2540 represents the maximum amount that can be paid for a rental unit under the program. Tenants are typically required to pay 30% of their adjusted income toward rent. If a tenant's adjusted income is $1,500 per month, they would pay $450 towards rent. This means the voucher would cover the remaining $2,090 of the $2540 rent, assuming the landlord charges the full SAFMR.
In addition to the base rent, there are utility allowances that must be considered. Utility allowances vary but are generally around $300-$400 for a two-bedroom unit. These allowances are included in the total reimbursement calculation, meaning the landlord receives this amount as well. So if the utility allowance is $350, the total reimbursement would be $2,440 ($2,090 base rent + $350 utilities).
It's crucial to note that the local market rent, as measured by ZORI (Zillow Observed Rent Index), is $1,959 for a two-bedroom apartment in this ZIP code. This suggests that charging the full SAFMR of $2540 might be higher than the prevailing market rates, potentially giving landlords a surplus above the typical market rent.
To summarize, if a landlord charges $2540 for a two-bedroom apartment, the voucher will cover up to $2,440 when including utility allowances. Given the local market rent of $1,959, this leaves a surplus of $481 per month for the landlord. This surplus is significant and can provide a buffer against potential shortfalls in other areas such as maintenance and vacancy periods.
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.