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 |
|---|---|---|---|---|
| 3BR | $1,870 | $295,258 | 0.63% | D |
U.S. Census Bureau data (2024)
The ZIP code 85193 is situated in a suburban neighborhood characterized by a relatively small population of 4,118 residents. This area has a modest rental segment, with only 17.3% of the residents being renters. The economic profile of the area is defined by a median household income of $57,930, which places it in the middle-income bracket. Additionally, the median home value stands at $346,957, indicating a stable housing market with moderate property values.
Moving into the specifics of the rental market, the Fair Market Rent (FMR) for ZIP 85193 as of the fiscal year 2024 is set at $1,570. In contrast, the actual market rent, as reported by the Census Bureau's American Community Survey (ACS), is significantly lower at $880. This disparity suggests that there is potential for landlords to receive higher rents through Section 8 vouchers compared to the prevailing market rates. The difference between the FMR and the market rent indicates a strong incentive for tenants to seek Section 8 assistance, given the lower cost of living relative to the subsidized rent levels.
Considering the practical implications for investors, ZIP 85193 appears to be well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the area offers a straightforward opportunity to benefit from the higher FMR without the need for extensive tenant screening or management due to the high demand for affordable housing. Meanwhile, value-add buyers can leverage the gap between the FMR and market rent to improve properties and charge closer to the FMR, thereby increasing their cash flow. However, the limited rental population might mean that competition for Section 8 tenants could be stiff, necessitating proactive management strategies to attract and retain them.
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.