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 | $1,080 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $285,089 | 0.48% | F |
| 3BR | $1,870 | $358,112 | 0.52% | F |
| 4BR | $2,120 | $461,199 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 85120, located in Apache Junction, AZ, presents a dynamic rental market influenced by several key indicators. The Fair Market Rent (FMR) for the area stands at $1570 for the fiscal year 2024, while the actual market rent, measured by Zillow's ZORI, is slightly higher at $1,736. This suggests that the rental market is robust, with landlords able to command rents above the government-set fair market rates.
A further insight into the rental market can be gleaned from the 17.8% renter share. This relatively low percentage indicates that a majority of residents in the area own their homes, which could imply less immediate pressure on rental properties. However, it also signals a potential long-term trend towards increased housing pressure as the population grows and more individuals seek rental options.
The 0.3% price-cut share among rentals is another telling statistic. It reveals that very few landlords are having to reduce their asking prices to attract tenants, suggesting that demand is strong enough to support current pricing levels without significant concessions. Coupled with the 50-day days on market (DOM), this implies that rental units are moving relatively quickly once they come onto the market, reinforcing the idea of a tight rental market.
The median home value of $358,745 provides context for the overall housing market. While this figure is indicative of the value of owner-occupied homes, it also reflects the economic conditions of the area. A higher median home value might suggest that the area is becoming more desirable, potentially attracting more renters and putting upward pressure on rental prices.
In summary, the dynamics of the market in ZIP 85120 suggest that demand is currently outpacing supply, particularly in the rental sector. The low price-cut share and quick DOM times indicate a healthy rental market. However, the relatively low renter share also points to an environment where homeownership is prevalent, which could change as the area continues to develop and attract new residents. For landlords and small-portfolio investors, this ZIP code represents a market with strong fundamentals and the potential for sustained growth.
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.