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 | $1,320 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,650 | $318,680 | 0.52% | F |
| 3BR | $2,180 | $382,033 | 0.57% | F |
| 4BR | $2,410 | $435,169 | 0.55% | F |
| 5BR | $2,796 | $530,203 | 0.53% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 85208 (Mesa, AZ) hinges on its financial metrics, particularly focusing on rental yield and market stability. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,880, while the average market rent stands slightly higher at $1,948. This suggests a relatively strong rental environment where properties can command rates close to the FMR. However, the median home value of $379,571 indicates that the area is not inexpensive, which could affect the overall yield when considering the cost of acquisition.
On the stability axis, Mesa's rental market shows some volatility. With only 18.3% of residents being renters, the market has a lower percentage of tenants compared to other areas, which can lead to fluctuations in demand. Additionally, the average days on market (DOM) is 21 days, which is not excessively long but also not indicative of a highly stable rental market where properties are quickly filled. The median household income in the area is $69,390, providing insight into the economic capacity of potential tenants.
To determine whether this is a high-yield/low-stability flip-style market or a steady-cashflow zone, we must consider the balance between these factors. The yield is decent, with rental prices nearly matching the FMR, but the stability is somewhat compromised by the low percentage of renters and moderate DOM. Therefore, ZIP 85208 is best classified as an area with moderate yield and moderate stability. It is neither a high-yield speculative market nor a reliably steady cashflow zone, but rather a middle ground where landlords can expect reasonable returns while managing some level of market variability.
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.