Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,630 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $2,030 |
| 3 Bedrooms | $2,680 |
| 4 Bedrooms | $2,970 |
| 5 Bedrooms | $3,445 |
| 6 Bedrooms | $3,858 |
| 7 Bedrooms | $4,167 |
| 8 Bedrooms | $4,375 |
U.S. Census Bureau data (2024)
Gilbert, AZ's ZIP code 85233 is a part of a suburban neighborhood known for its relatively high median income of $111,160. The area has a total population of 39,077, with 27.0% of residents being renters. This indicates a community where a significant portion of the population owns their homes, with a median home value of $526,140. The demographics suggest a middle to upper-middle class residential area, likely attracting families and professionals seeking a stable environment.
Moving into the economic landscape for rental properties, the Fair Market Rent (FMR) for ZIP 85233 as of the fiscal year 2024 is set at $2,370. In contrast, the market rent as measured by Zillow's ZORI index stands at $1,928. This discrepancy between the FMR and the market rent presents an opportunity for landlords and small-portfolio investors who can leverage the higher FMR rates through Section 8 housing vouchers. The gap implies that landlords could potentially receive above-market rents while providing affordable housing options to eligible tenants.
Given these factors, ZIP 85233 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For those looking to operate hands-off, the higher FMR compared to market rent ensures a steady stream of income without the need for extensive property management. On the other hand, for hands-on investors interested in improving properties to command even higher rents, the initial disparity between FMR and market rent offers a buffer to justify the investments made. Both approaches can be successful in this neighborhood, depending on the investor's strategy and risk tolerance.
Data Sources: FMR data from HUD (2027). 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.