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 | $1,250 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,340 | $114,269 | 1.17% | B |
| 2BR | $1,560 | $356,458 | 0.44% | F |
| 3BR | $2,060 | $303,443 | 0.68% | D |
| 4BR | $2,280 | $331,491 | 0.69% | D |
| 5BR | $2,645 | $395,125 | 0.67% | D |
U.S. Census Bureau data (2024)
The ZIP code 85132, located in Florence, AZ, is not predominantly a renter-heavy area. With a population of 38,671, only 13.6% of residents are renters, indicating that homeownership is more prevalent in this region. The median household income stands at $79,000, which provides a context for evaluating the affordability of housing.
The market rent for the area is $1,792 per month, which represents approximately 22.7% of the median household income. This calculation is derived from dividing the monthly rent by the annual income ($1,792 / ($79,000 / 12)), showing that typical rent consumes a significant portion of local incomes. Comparatively, the Fair Market Rent (FMR) for the area is set at $1,700 for FY 2024, slightly below the market rate but still within a reasonable range.
Given the relatively low percentage of renters and the fact that the market rent exceeds the FMR, it suggests that there might be a limited demand for Section 8 vouchers in this area. Landlords and small-portfolio investors can expect tenants who are likely to be part of the lower-income segment of the population, with a focus on those whose total income allows them to qualify for assistance without exceeding the FMR threshold.
The expected tenant profile includes individuals or families whose combined income is around $79,000 or less, seeking affordable rental options that align with their financial capabilities. These tenants would typically require some form of subsidy to cover the rent, given the high cost relative to their income. However, the competition for vouchers may be less intense compared to more renter-heavy areas, making it easier for landlords to secure tenants through the Section 8 program.
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.