Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,400 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,300 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
To understand how Section 8 economics work in ZIP code 85211, it's essential to know the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $1880 for the fiscal year 2024. This figure is specific to this ZIP code, reflecting the localized rental market conditions.
The SAFMR of $1880 is the maximum amount that HUD (Department of Housing and Urban Development) will reimburse landlords for a two-bedroom unit under the Section 8 program. However, the actual payment received by landlords depends on several factors, including the tenant's portion of the rent and utility allowances.
Tenants participating in the Section 8 program are required to pay 30% of their adjusted income towards rent. This amount is calculated based on the household's gross income minus certain allowable deductions, such as dependents and elderly/disabled status. Once this figure is determined, it is subtracted from the SAFMR to find out how much the government will pay.
For instance, if a tenant's 30% contribution is $564, then the government would cover the remaining $1316. It's important to note that this calculation can vary widely depending on the individual tenant's income.
In addition to the rent, there are utility allowances. These are fixed amounts set by HUD to help cover the cost of utilities. For a two-bedroom apartment, the utility allowance is typically around $275 per month. This allowance does not directly increase the monthly rent reimbursement but is part of the overall budgeting process for the tenant.
Given that the local market rent is currently not available, we cannot provide a direct comparison. However, landlords should be aware that the SAFMR sets a cap on the total rent they can charge. If the market rent exceeds the SAFMR, landlords must ensure that the total rent charged does not exceed the $1880 limit.
To illustrate the reimbursement gap or surplus, let's assume a tenant's contribution is $564. In this case, the government would pay $1316, making the total reimbursement $1591 ($1316 + $275 utility allowance). If the market rent were higher than the SAFMR, landlords would face a shortfall. Conversely, if the market rent is lower, landlords might receive slightly more than the market rate due to the utility allowance.
Without specific local market rent figures, we cannot quantify the exact gap or surplus. However, landlords should use the SAFMR of $1880 as a guideline for setting their rents and understanding the potential financial impact of accepting Section 8 vouchers.
Data Sources: FMR data from HUD (2027).
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.