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 | $1,680 |
| 1 Bedroom | $1,810 |
| 2 Bedrooms | $2,100 |
| 3 Bedrooms | $2,770 |
| 4 Bedrooms | $3,090 |
| 5 Bedrooms | $3,584 |
| 6 Bedrooms | $4,014 |
| 7 Bedrooms | $4,335 |
| 8 Bedrooms | $4,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,770 | $586,321 | 0.47% | F |
| 4BR | $3,090 | $660,795 | 0.47% | F |
| 5BR | $3,584 | $723,952 | 0.5% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 85087 operate under specific parameters that affect both landlords and tenants. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $2,690. This figure represents the maximum amount that the housing authority will pay for a voucher in this specific ZIP code. However, the local market rent for a similar unit, according to the Census ACS, averages around $2,280.
A landlord might wonder how much they can realistically expect to receive from a voucher holder. To clarify, the voucher payment consists of two parts: the tenant's contribution and the utility allowance. The tenant is required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,800 per month, the tenant would contribute approximately $540. The remaining rent is covered by the housing authority, up to the SAFMR limit.
In ZIP 85087, if the local market rent is $2,280, then the housing authority would reimburse the landlord the difference between the tenant's contribution and the market rent, which is $1,740. This means the landlord would receive a total of $2,280 ($540 from the tenant and $1,740 from the housing authority).
Utility allowances vary but typically range from $300 to $400 per month. These allowances are designed to cover the tenant’s utility costs and do not directly increase the landlord’s reimbursement. Therefore, the total reimbursement a landlord receives remains within the SAFMR cap of $2,690.
To summarize, in ZIP 85087, a landlord renting a two-bedroom apartment for $2,280 can expect to be reimbursed $1,740 by the housing authority, plus the tenant's $540 contribution, totaling the market rent of $2,280. Given that the SAFMR is higher at $2,690, there is no need to adjust the rent downward to fit within voucher limits. In fact, this creates a potential surplus for landlords who can charge closer to the SAFMR without exceeding it.
However, if a landlord charges exactly $2,690, the reimbursement gap would be the difference between the tenant's contribution and the market rent. Assuming the same average adjusted income of $1,800, the tenant would still contribute $540, leaving the housing authority to cover $2,150. This would result in a reimbursement gap of $540, meaning the landlord would not receive the full $2,690 unless the tenant's income was higher or the local market rent increased.
In ZIP 85087, the typical 2BR voucher reimbursement gap is negative, indicating a surplus where the SAFMR exceeds the local market rent. Landlords can benefit from this by charging closer to the SAFMR limit, ensuring they receive a stable and often higher-than-market-rate income.
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.