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 | $1,310 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,200 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,200 | $276,705 | 0.8% | D |
| 4BR | $2,440 | $300,731 | 0.81% | C |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP code 85145 are significant and should be carefully considered before investing. Tenant turnover is a critical issue, as the Fair Market Rent (FMR) for the area stands at $1880 for FY 2024, which may not align with the local market rent. This misalignment can lead to higher turnover rates if tenants find better rental deals elsewhere. Additionally, the vacancy exposure in ZIP 85145 is notable due to the lack of data on days on market (DOM), indicating that it might take longer than expected to fill vacancies. This extended period without rental income can strain cash flow.
The deferred maintenance exposure is another concern. With a typical home value of $290,684 and a median income of $80,357, there is a substantial gap between property values and residents' ability to afford upkeep. Landlords may face properties in need of repairs or upgrades that they must cover, potentially leading to unexpected expenses. However, the 3.4% renter share suggests a high concentration of renters, which typically correlates with increased demand for housing vouchers. This demand can stabilize occupancy rates and provide a steady stream of income, albeit subject to the constraints of the Section 8 program.
Despite these challenges, the high renter density offers a counterbalance to the risks. Landlords in ZIP 85145 can benefit from a stable pool of tenants who rely on vouchers to secure housing, reducing the likelihood of prolonged vacancies. Moreover, the presence of a large number of renters ensures that there will always be a market for affordable housing, even if it requires compliance with government regulations.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.