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 |
The ZIP code 85214, located in the Phoenix-Mesa-Chandler, AZ MSA, can serve as a cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the HUD Fair Market Rent (FMR) for the area, which stands at $1,880 for a one-bedroom unit in fiscal year 2024. While specific data on median home values and market rents were not available, the FMR figure provides a clear benchmark for rental income expectations.
Given that the FMR is set below the market rate, landlords can expect a consistent and predictable stream of rental income through Section 8 vouchers. This stability is crucial for maintaining positive cash flow, especially when dealing with tenants who might otherwise struggle to afford market-rate rents. By anchoring a portion of the portfolio in ZIP 85214, landlords can ensure that they have a reliable source of income that is protected against market fluctuations.
The consistency offered by Section 8 vouchers in ZIP 85214 helps to balance out the risks associated with other parts of the portfolio that might be more volatile due to market conditions. This strategic approach allows landlords and small-portfolio investors to focus on managing their properties effectively while minimizing financial uncertainty.
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.