Section 8 Fair Market Rent (FMR) for ZIP 85226 - 2027

Investment Score for ZIP 85226

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	$1,620
1 Bedroom	$1,760
2 Bedrooms	$2,050
3 Bedrooms	$2,730
4 Bedrooms	$3,030
5 Bedrooms	$3,515
6 Bedrooms	$3,937
7 Bedrooms	$4,252
8 Bedrooms	$4,465

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,050	$351,699	0.58%	F
3BR	$2,730	$464,814	0.59%	F
4BR	$3,030	$606,488	0.5%	F
5BR	$3,515	$746,105	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85226 (Chandler, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 85226 in Chandler, Arizona, indicate that the rent for a two-bedroom apartment is set at $2270 per month. This figure represents 23.7% of the median household income in the area, which is $114,817. However, the actual rental market is significantly higher. According to Zillow, the median price for a two-bedroom home in this ZIP code is $360,412, suggesting a price-to-FMR ratio of 13.2x. This means that the actual rent for a two-bedroom unit is likely much higher than the FMR, creating a significant constraint for voucher holders who can only pay up to the FMR amount. For instance, if a landlord charges $2270, they would be at the maximum limit allowed by the voucher program, but this is still far below the actual market value of homes in the area. #### Affordability & Renter Profile The population of ZIP 85226 is 42,294, with 39.2% being renters. The occupancy rate is 96.5%, indicating a very tight rental market. Given that the median household income is relatively high at $114,817, it suggests that the typical renter in this area has a strong financial background and can afford higher rents. However, the FMR for a two-bedroom unit at $2270 is only a fraction of what the market demands, making it challenging for low-income families to find affordable housing. The high occupancy rate also implies that there is little vacancy, which could lead to increased competition among renters and potentially drive up rents further. #### Investor Angle From an investor’s perspective, the ZIP code 85226 presents a mixed scenario. While the median household income is high, the actual rental prices are much higher than the FMR. This means that landlords who want to participate in the Section 8 voucher program must adhere to the FMR limits, which are significantly lower than the market rates. For example, a two-bedroom unit priced at $2270 would be at the upper end of what a voucher holder could afford, but this is still below the market average. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning a rental property. Assuming a mortgage payment of around $1500-$1800 per month (based on the median home price of $360,412), along with maintenance costs, insurance, and other fees, it is unlikely that a landlord would achieve positive cash flow at the FMR levels. Therefore, the investment grade for this ZIP code would be considered low for Section 8-focused investors due to the limited financial returns. #### Specific Actionable Insights 1. **Rent Pricing Strategy**: Landlords should carefully consider their pricing strategy if they wish to attract Section 8 voucher holders. Setting rents at or slightly above the FMR ($2270 for a two-bedroom unit) will ensure compliance with the program while maximizing potential revenue. However, this comes at the cost of foregoing higher market rents. 2. **Property Maintenance and Upkeep**: Given the tight rental market and high occupancy rate, maintaining properties to a high standard can help landlords secure tenants willing to pay closer to the FMR. Additionally, investing in energy-efficient upgrades can reduce utility costs, thereby improving overall cash flow. #### Bottom Line For investors focusing specifically on the Section 8 voucher program, the recommendation for ZIP code 85226 is to **Skip**. The disparity between the FMR and actual market rents makes it difficult to achieve positive cash flow, especially when considering the high cost of property ownership in this area. Investors looking for better returns might want to explore other ZIP codes where the FMR is closer to the market rent, allowing for more favorable financial outcomes.

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.