Section 8 Fair Market Rent (FMR) for ZIP 85224 - 2027

Investment Score for ZIP 85224

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,590
1 Bedroom	$1,720
2 Bedrooms	$2,000
3 Bedrooms	$2,670
4 Bedrooms	$2,960
5 Bedrooms	$3,434
6 Bedrooms	$3,846
7 Bedrooms	$4,154
8 Bedrooms	$4,362

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,720	$222,665	0.77%	D
2BR	$2,000	$324,271	0.62%	D
3BR	$2,670	$453,863	0.59%	F
4BR	$2,960	$541,962	0.55%	F
5BR	$3,434	$738,763	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85224 (Chandler, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Chandler, AZ (ZIP 85224) is set by HUD for 2026 as follows: - 0BR: $1760 - 1BR: $1910 - 2BR: $2220 - 3BR: $2960 - 4BR: $3280 To understand how these FMRs compare to actual rents, we need to consider the typical rental rates in the area. The Zillow median price for a 2BR home in 85224 is $333,149, which is significantly higher than the FMR. This suggests that the actual rental rates are likely to be higher than the FMR, making it challenging for Section 8 voucher holders to find suitable housing. For instance, the 2BR FMR represents only about 28.2% of the median household income ($94,516), indicating that even at the FMR, 2BR units are a substantial portion of the average renter’s budget. #### Affordability & Renter Profile Given that 46.2% of the population in 85224 are renters, the demand for rental properties is considerable. However, the high occupancy rate of 93.1% indicates that the market is relatively tight, with few vacant units available. This tightness could lead to higher rental prices, further straining affordability for low-income renters who rely on Section 8 vouchers. The median household income of $94,516 suggests that the majority of residents can afford higher rents, but the significant percentage of renters (46.2%) implies that there is a notable segment of the population that might struggle with housing costs. The FMR for 2BR units being 12.5 times lower than the median home value on Zillow underscores the disparity between affordable rents and the overall cost of living in the area. #### Investor Angle From an investor perspective, the key question is whether investing in rental properties in 85224 can generate positive cash flow at the FMR levels. Given that the Zillow median price for a 2BR unit is $333,149, and the FMR is $2220, the price-to-FMR ratio of 12.5x is quite high. This means that the cost of acquiring a property far exceeds the potential rental income under the FMR guidelines. To determine if this ZIP code is cash-flow positive, we must consider the typical operating expenses and mortgage payments associated with owning a rental property. Assuming a conservative estimate of 1% of the purchase price as monthly maintenance and management costs, a 2BR property would incur approximately $2776 per month in expenses alone. Adding a mortgage payment based on a 4.5% interest rate over 30 years, the total monthly cost would be around $1600, leading to a combined expense of roughly $4376 per month. This is substantially higher than the $2220 FMR for a 2BR unit, indicating that the investment would likely not be cash-flow positive at the FMR level. The investment grade for this ZIP code would be considered low due to the high acquisition costs relative to the rental income allowed by the FMR. Investors looking to maximize returns should consider other markets where the price-to-FMR ratio is lower. #### Specific Actionable Insights 1. **Focus on Larger Units**: While 2BR units are the most common type, they represent only 28.2% of the median income. Investors might want to focus on larger units (3BR or 4BR) where the FMR is higher ($2960 and $3280 respectively). These units may offer better cash flow opportunities despite the high price-to-FMR ratio. 2. **Consider Alternative Financing Options**: Given the high acquisition costs, traditional financing might not be sufficient to achieve positive cash flow. Investors could explore alternative financing methods such as hard money loans, private lenders, or creative lease-to-own arrangements to reduce upfront costs and improve profitability. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 85224 (Chandler, AZ) is to **skip** this market. The high price-to-FMR ratio and tight rental market make it difficult to find properties that can generate positive cash flow under the FMR guidelines. Investors seeking more favorable conditions should look for areas with lower acquisition costs relative to FMRs.

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.