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 | $1,910 |
| 1 Bedroom | $2,050 |
| 2 Bedrooms | $2,380 |
| 3 Bedrooms | $3,140 |
| 4 Bedrooms | $3,480 |
| 5 Bedrooms | $4,037 |
| 6 Bedrooms | $4,521 |
| 7 Bedrooms | $4,883 |
| 8 Bedrooms | $5,127 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,380 | $366,700 | 0.65% | D |
| 3BR | $3,140 | $503,348 | 0.62% | D |
| 4BR | $3,480 | $647,996 | 0.54% | F |
| 5BR | $4,037 | $760,928 | 0.53% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 85083, Phoenix, AZ, suggests a robust environment for both homeowners and investors. With a median home value of $627,895, the area maintains a high standard of living and attracts buyers willing to invest in premium properties. The fact that only 0.3% of listings have been reduced indicates a seller's market where homes are priced appropriately and there is little need for price adjustments. This stability supports strong pricing power, allowing landlords and investors to maintain or even slightly increase their asking prices over the next 12-24 months without fear of significant inventory buildup.
The median days on market (DOM) of 16 days further underscores the brisk pace at which homes are selling. This quick turnover signals a competitive buyer pool, driving demand and supporting higher property values. For those looking to hold onto their investments for the long term, the data points to a solid appreciation thesis. The gap between the Fair Market Rent (FMR) of $2,750 for ZIP 85083 in fiscal year 2024 and the current Zillow Observed Rent Index (ZORI) of $2,684 suggests that rental prices are poised to rise, aligning with the trend of increasing property values.
Landlords and small-portfolio investors should take note of the rental market dynamics as well. The FMR projection indicates a potential increase in rental income, which can offset any inflationary pressures on maintenance costs and taxes. Additionally, the slight disparity between FMR and ZORI provides an opportunity for savvy investors to adjust their rental rates incrementally to capture the rising market value.
In summary, the combination of high median home values, low listing reductions, and rapid sales cycles in ZIP 85083 paints a picture of a stable and appreciating market. Long-term investors can expect to see gradual increases in property values and rental income, making it a favorable location for real estate investment.
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.