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 potential risks for investing in Section 8 properties in ZIP code 85244, located in an area of Arizona known for its unique characteristics, include challenges related to tenant turnover, vacancy exposure, and deferred maintenance. Tenant turnover can be particularly problematic when comparing the market rent, which is currently unavailable, to the Fair Market Rent (FMR) of $1880 for fiscal year 2024. This discrepancy can lead to difficulties in maintaining consistent occupancy and cash flow.
Vacancy exposure is another concern, especially since the days on market (DOM) data is also not available. This lack of information makes it hard to predict how long a property might remain vacant between tenants, thus impacting the financial performance of the investment. Additionally, the absence of typical home value and median income data complicates the assessment of deferred maintenance risks. Without these figures, it's challenging to determine if residents have the financial capacity to report and manage maintenance issues effectively, which could result in higher repair costs and more frequent vacancies.
However, these risks must be weighed against the high density of renters in the area. The renter share, though currently unspecified, often indicates a strong demand for housing vouchers. High renter concentration typically translates into a robust pool of Section 8 eligible tenants, which can help mitigate the risks associated with vacancy and turnover.
In summary, the investment in Section 8 properties in ZIP 85244 presents a moderate risk for a first-time landlord due to uncertainties around market rents, days on market, and deferred maintenance, but the potential for a high volume of eligible tenants provides a significant counterbalance.
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.