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 | $1,150 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,900 |
| 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 | $1,440 | $224,375 | 0.64% | D |
| 3BR | $1,900 | $291,554 | 0.65% | D |
| 4BR | $2,120 | $339,267 | 0.62% | D |
| 5BR | $2,459 | $388,161 | 0.63% | D |
U.S. Census Bureau data (2024)
Zip code 85122 covers the heart of Casa Grande, Arizona, a historic hub strategically situated roughly halfway between Phoenix and Tucson. This area functions as a vital logistics and retail center for Pinal County, bolstered by the presence of major employers like Abbott Nutrition, which operates a significant manufacturing facility in the region. The neighborhood blends older, established single-family blocks with expanding commercial corridors, offering a small-town feel while maintaining direct access to the broader Phoenix-Mesa-Chandler metropolitan economy.
Fiscally, the market presents a distinct picture for housing assistance programs. The FY2026 HUD Fair Market Rent for a 2-bedroom unit is $1,530, while current market rents (Zillow ZORI) sit at $1,586, creating a narrow negative gap of $56. Investors should note the median home value is $308,599, with specific 2-bedroom properties trading around $229,910. However, inventory moves slowly here, with a median days on market of 84 days. Because the HUD payment standard slightly trails market rates, voucher tenants may require small concessions to secure quality stock, though the cash-flow delta is relatively manageable.
The tenant base is anchored by solid local fundamentals. With a median household income of $68,443 and a renter share of 28.6%, the population leans toward owner-occupancy, suggesting a stable community where rental demand is driven by necessity rather than transience. Families in this area have access to highly-rated educational options, such as Villago Middle School, which draws long-term residents. This demographic profile supports consistent demand for 3- and 4-bedroom units, particularly from households needing space near quality schools and local amenities.
The Section 8 verdict for 85122 leans toward stability and long-term holding over immediate high-yield cash flow. The minor $56 shortfall between FMR and market rent means landlords must price carefully, but the $2,070 3BR FMR provides better headroom for larger family homes. Given the 84-day days on market and the presence of institutional employers like Abbott, the strongest angle here is acquiring stabilized assets in a non-volatile market rather than chasing rapid appreciation. The math works best for investors seeking steady, low-turnover occupancy rather than aggressive rent bumps.
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.