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 | $200,178 | 0.69% | D |
| 3BR | $1,870 | $248,223 | 0.75% | D |
| 4BR | $2,120 | $264,123 | 0.8% | C |
U.S. Census Bureau data (2024)
1570 renters in ZIP 85123 can expect the Fair Market Rent (FMR) for their housing to be set at $1570 for zip FY 2024. This figure represents the upper limit for rental assistance under the Section 8 program. Meanwhile, the actual market rent, known as ZORI, stands at $1,338, indicating that properties priced below the FMR still have a competitive edge in the local rental market. The median home value in this area is $249,378, reflecting the overall property values and suggesting a stable real estate environment. With a 21.7% renter share, it's clear that a significant portion of the population relies on rental housing, making it a viable investment opportunity for landlords. The median income of $69,137 provides insight into the financial capabilities of potential tenants, ensuring that there is a sufficient pool of eligible individuals who can afford the rent. A 70-day Days on Market (DOM) average suggests that properties take approximately two and a half months to find a tenant, which is a critical consideration for cash flow management. Furthermore, the 0.3% price-cut share indicates that very few landlords need to reduce their asking prices to attract tenants, implying strong demand and stability in rental rates.
The data paints a picture of a balanced rental market in Arizona City, AZ, where Section 8 vouchers can effectively cover the cost of living for low-income families without significantly undercutting market rents. Given the relatively low DOM and minimal price-cut share, it appears that the rental market is robust and that properties in this ZIP code are attractive to both voucher holders and other renters. Therefore, for landlords and small-portfolio investors, ZIP 85123 presents a favorable environment for Section 8 participation, offering steady returns and minimal risk.
Verdict: ZIP 85123 is a solid choice for Section 8 investments, given the strong demand and stable market conditions.
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.