Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,660 |
| 1 Bedroom | $1,790 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,760 |
| 4 Bedrooms | $3,060 |
| 5 Bedrooms | $3,550 |
| 6 Bedrooms | $3,976 |
| 7 Bedrooms | $4,294 |
| 8 Bedrooms | $4,509 |
U.S. Census Bureau data (2024)
The ZIP code 85121 stands out due to its relatively low population of 2,800 residents, with 45.6% of them being renters. The median income here is $31,173, which is significantly lower than many other areas across the country. Notably, the median home value is listed as N/A, indicating that there might be a lack of owner-occupied homes in the area or that the data is insufficient to provide an accurate figure.
Moving to the voucher economics, the Fair Market Rent (FMR) for ZIP 85121 in fiscal year 2024 is set at $2,370. This figure is substantially higher than the market rent reported by the Census Bureau's American Community Survey (ACS), which is $398. This discrepancy suggests that the rental market in ZIP 85121 is heavily subsidized by government housing assistance programs, particularly Section 8 vouchers.
The high FMR compared to the actual market rent indicates that landlords who accept Section 8 vouchers can potentially charge much closer to the fair market rate than the current average market rate. This could be a significant advantage for landlords looking to stabilize their rental income and mitigate risks associated with lower-income tenants.
In terms of stability, the data signature for ZIP 85121 leans towards being transitional. With a large portion of the population renting and a median income that is below average, it suggests that the area might be experiencing changes in its economic conditions or demographic makeup. The heavy reliance on Section 8 vouchers also points to ongoing efforts to support affordable housing in the region, which could indicate a period of adjustment rather than long-term stability.
For small-portfolio investors and landlords, this ZIP code presents an opportunity to leverage the higher FMR rates while serving a community that relies heavily on rental assistance. However, it's important to monitor local trends and economic factors closely, as they can influence the demand for subsidized housing and the overall market dynamics.
Data Sources: FMR data from HUD (2027). 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.