Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA
| 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 |
U.S. Census Bureau data (2024)
The Section 8 rental assistance program in ZIP code 85131, which covers Eloy, Arizona, presents an interesting scenario for landlords and small-portfolio investors. The Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development for fiscal year 2024 is $1,570. In contrast, the actual market rent, measured by the Zillow Rent Index (ZORI), stands at $1,350. This creates a gap where the FMR exceeds the market rent by $220, or approximately 16.3%.
This situation makes Eloy a favorable location for voucher tenants. Landlords can benefit from a higher rental yield because they receive the full FMR amount from the government, even if it's above what the market would typically bear. Given that only 24.6% of residents in Eloy are renters, competition for rental properties might be lower, allowing landlords to attract and retain tenants who qualify for Section 8 vouchers.
The median home value in Eloy is $294,336, indicating that homeownership is relatively affordable. However, the median household income is $56,576, suggesting that many residents might struggle to afford both housing and other expenses without assistance. For landlords, accepting Section 8 tenants means they can charge a rate that is higher than the local market average, thus increasing their cash flow per unit.
Investors should consider the administrative aspects of participating in the Section 8 program, such as regular inspections and compliance with HUD standards. Despite these requirements, the potential to earn $220 more per month compared to the open-market rate can offset any additional costs and still provide a solid investment opportunity.
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.