Section 8 Fair Market Rent (FMR) for ZIP 85086 - 2027

Investment Score for ZIP 85086

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	$1,880
1 Bedroom	$2,020
2 Bedrooms	$2,350
3 Bedrooms	$3,100
4 Bedrooms	$3,440
5 Bedrooms	$3,990
6 Bedrooms	$4,469
7 Bedrooms	$4,827
8 Bedrooms	$5,068

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,350	$445,175	0.53%	F
3BR	$3,100	$522,127	0.59%	F
4BR	$3,440	$677,130	0.51%	F
5BR	$3,990	$765,046	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85086 (Anthem, AZ) #### Section 8 Voucher Dynamics In ZIP code 85086, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2,560 per month. This amount represents 25.2% of the median household income in the area, which is $121,676. The FMR is intended to reflect the average rent for a modest home in good condition, but it is important to understand how this compares to actual rental prices in the market. According to Zillow, the median price for a two-bedroom home in this ZIP code is $455,023. However, the price-to-FMR ratio is quite high at 14.8 times, indicating that actual rental prices are significantly higher than the FMR. For example, if a property owner were to rent out a two-bedroom home at the Zillow median price, they would be charging approximately $1,850 per month ($455,023 divided by 250 months, assuming a 25-year mortgage). This is still above the FMR of $2,560, suggesting that many renters, especially those relying on Section 8 vouchers, face significant challenges finding affordable housing. The constraints for voucher holders are clear: they must find landlords willing to accept the lower FMR rates. Given the high price-to-FMR ratio, this can be difficult, as many landlords may prefer to charge higher rents to achieve better returns on their investments. #### Affordability & Renter Profile The population of ZIP 85086 is 43,270, with only 14.8% of residents being renters. This indicates that the majority of the population owns their homes, making it a predominantly homeowner-focused community. The occupancy rate of 92.9% suggests that there is a relatively strong demand for housing, although the low percentage of renters implies that the rental market is tighter compared to other areas. Given the high median household income and the fact that only 14.8% of the population are renters, it is likely that the typical renter in this ZIP code has a higher income level than the national average. This could mean that the rental market is skewed towards higher-income individuals who can afford the premium rents. However, for those relying on Section 8 vouchers, the affordability gap is stark, with the FMR representing a much smaller portion of their income compared to the overall median. #### Investor Angle From an investor perspective, the key question is whether properties can generate positive cash flow when rented at the FMR. The FMR for a two-bedroom unit is $2,560, while the Zillow median price suggests a rental rate closer to $1,850 per month. This means that even if a landlord charges at the FMR, they are still below the potential market rate. To determine the investment grade, we need to consider the costs associated with owning and maintaining a property. Assuming a conservative estimate of expenses including mortgage payments, property taxes, insurance, maintenance, and utilities, these costs might range between $1,500 to $2,000 per month for a two-bedroom home. At the FMR of $2,560, the net cash flow would be positive, ranging from $560 to $1,060 per month. This suggests that renting at the FMR could still be profitable, though the margins are tighter compared to the potential market rate. However, the challenge lies in finding tenants who can meet the FMR requirements and securing long-term leases. The high price-to-FMR ratio also means that there is less competition from other investors who might be looking to maximize returns through higher rental prices. #### Specific Actionable Insights 1. **Target Properties Below FMR**: Investors should focus on acquiring properties that can be rented at or slightly below the FMR. For instance, a two-bedroom property priced at $2,300 per month would still attract Section 8 tenants while providing a buffer against unexpected expenses. 2. **Utilize Property Management Services**: Given the complexities of dealing with Section 8 vouchers and the need to ensure compliance with HUD regulations, using professional property management services can be beneficial. These services can help navigate the process and maintain a steady stream of qualified tenants. 3. **Consider Multi-Family Units**: Since the FMR for larger units like three-bedroom and four-bedroom apartments is $3,410 and $3,790 respectively, multi-family units may offer better cash flow opportunities. Investors should evaluate the feasibility of converting single-family homes into multi-family units, or seek out existing multi-family properties that can be rented at the FMR. #### Bottom Line For Section 8-focused investors, the ZIP code 85086 presents a mixed picture. While the rental market is tight and the occupancy rate is high, the low percentage of renters and the high price-to-FMR ratio make it challenging to find properties that can be rented at the FMR without significant concessions. **Recommendation**: Hold. The market dynamics suggest that while there is potential for positive cash flow, the tight rental market and high price-to-FMR ratio indicate that it may be difficult to consistently find and retain Section 8 tenants. Investors should proceed with caution and carefully evaluate the specific properties and their potential for attracting and retaining voucher holders before making any purchases.

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.