Section 8 Fair Market Rent (FMR) for ZIP 85143 - 2027

Investment Score for ZIP 85143

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,630
1 Bedroom	$1,750
2 Bedrooms	$2,030
3 Bedrooms	$2,680
4 Bedrooms	$2,970
5 Bedrooms	$3,445
6 Bedrooms	$3,858
7 Bedrooms	$4,167
8 Bedrooms	$4,375

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,030	$368,377	0.55%	F
3BR	$2,680	$341,934	0.78%	D
4BR	$2,970	$391,694	0.76%	D
5BR	$3,445	$454,107	0.76%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85143 (San Tan Valley, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 85143 in 2026 indicate that a two-bedroom unit should rent for $2,140 per month. However, the actual rental market is significantly higher. The Zillow median price for a two-bedroom home is $372,034, which translates to a monthly mortgage payment of approximately $1,780 based on a 4.5% interest rate and a 30-year fixed mortgage. When considering property taxes, insurance, and maintenance, the total cost of ownership can easily exceed the FMR. This means that landlords participating in the Section 8 program must accept a lower rent compared to market rates, which can be a significant constraint for voucher holders looking for affordable housing options. #### Affordability & Renter Profile The median household income in San Tan Valley is $93,707, and only 19.9% of the population are renters. Given that the FMR for a two-bedroom unit represents 27.4% of the median income, it suggests that the rental market is relatively tight. With a high occupancy rate of 89.0%, there is a strong demand for housing, but the supply of units available at or below FMR is likely limited. The typical renter in this area would need to have a substantial portion of their income dedicated to housing costs, making it challenging for low-income individuals to find suitable accommodations without assistance. #### Investor Angle From an investor perspective, the ZIP code 85143 presents a mixed picture when considering cash flow at FMR levels. The Zillow median price for a two-bedroom home is $372,034, and the FMR for such a unit is $2,140. This implies a price-to-FMR ratio of 14.5x, which is quite high and indicates that the property value is significantly above what the rental market would support under the Section 8 program. To determine if this ZIP is cash-flow positive, we need to consider the expenses associated with owning a rental property. Assuming a mortgage payment of $1,780, property taxes of around $1,500 annually (or $125 monthly), insurance of about $100 monthly, and maintenance costs of $100 monthly, the total monthly expenses would be roughly $2,105. At the FMR of $2,140, the net cash flow would be minimal, around $35 per month. This suggests that the investment grade for properties in this ZIP code is low, especially for those relying solely on Section 8 vouchers for rental income. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might want to focus on smaller units like one-bedroom apartments, where the FMR is $1,840. While the margin is still slim, the total monthly expenses might be lower due to a smaller property size, potentially allowing for a slightly better cash flow scenario. 2. **Consider Non-Section 8 Tenants**: Due to the limited cash flow potential at FMR levels, investors could explore renting to non-Section 8 tenants who might be willing to pay closer to market rates. For example, a two-bedroom unit could command a rent of $2,500 or more, which would provide a much healthier cash flow. 3. **Utilize Property Management Services**: Given the complexities of managing Section 8 properties, utilizing professional property management services might be beneficial. These services can help navigate the administrative requirements and ensure compliance with HUD regulations, although they will reduce the net cash flow further. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 85143 is to **skip** this market. The high price-to-FMR ratio and minimal cash flow suggest that properties in this area are not financially viable for investors relying solely on Section 8 vouchers. Instead, investors might consider markets with a lower price-to-FMR ratio or explore other types of rental properties that offer better financial returns.

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.