Section 8 Fair Market Rent (FMR) for ZIP 85249 - 2027

Investment Score for ZIP 85249

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	$2,010
1 Bedroom	$2,160
2 Bedrooms	$2,510
3 Bedrooms	$3,320
4 Bedrooms	$3,680
5 Bedrooms	$4,269
6 Bedrooms	$4,781
7 Bedrooms	$5,163
8 Bedrooms	$5,421

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	$2,510	$375,550	0.67%	D
3BR	$3,320	$546,832	0.61%	D
4BR	$3,680	$719,161	0.51%	F
5BR	$4,269	$904,216	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85249 (Chandler, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 85249 in Chandler, Arizona, is set by HUD for 2026. For a two-bedroom unit, the FMR is $2,760. However, the Zillow median price for a two-bedroom home in this area is $387,575, which translates to a price-to-FMR ratio of 11.7x. This indicates that the actual rental prices in the market are significantly higher than the FMR, creating a challenging environment for Section 8 voucher holders. The voucher program aims to provide affordable housing options, but with such a high ratio, it is likely that many landlords will find it unprofitable to accept vouchers for units that are below market value. Given that the FMR represents only 21.6% of the median household income ($153,633), voucher holders would need to find units priced at or below $2,760 to remain within their budget. This is particularly difficult since the median rent for a two-bedroom unit is much higher, suggesting that voucher holders face significant constraints in finding suitable housing. #### Affordability & Renter Profile ZIP code 85249 has a relatively low renter population percentage of 11.5%, indicating that the majority of residents are homeowners. The occupancy rate of 96.0% suggests that the housing stock is mostly occupied, leaving little room for new renters to enter the market. With a median household income of $153,633, the typical resident can afford higher rents, making it a less competitive market for lower-income renters. The high median income also implies that those who do rent are likely to be higher-income individuals or families who might not require assistance from programs like Section 8. Therefore, the market is tight, with limited availability of affordable units, especially for those relying on vouchers. #### Investor Angle From an investor's perspective, the ZIP code 85249 presents a mixed picture. The FMR for a two-bedroom unit is $2,760, but the actual median rent is much higher at $387,575. This means that if an investor were to purchase a property and rent it out at the FMR, they would likely struggle to cover costs and generate profit due to the high price-to-FMR ratio. To determine whether this ZIP code is cash-flow positive at FMR, we must consider the typical expenses associated with owning and renting out a property. These include mortgage payments, property taxes, insurance, maintenance, and other operational costs. Given the high median home price, it is likely that mortgage payments alone would exceed the FMR, making it difficult to achieve positive cash flow. In terms of investment grade, the high price-to-FMR ratio and the limited demand for affordable housing suggest that this ZIP code is not ideal for investors focusing solely on Section 8 tenants. The market is geared towards higher-income renters, and the cost of acquiring properties far outweighs the potential rental income from voucher holders. #### Specific Actionable Insights 1. **Target Higher-Income Renters**: Given the high median income and the limited number of renters, investors should focus on targeting higher-income renters rather than those using Section 8 vouchers. This would likely result in better cash flow and profitability. 2. **Consider Mixed-Income Developments**: Investors could explore opportunities to develop mixed-income housing projects where a portion of units are reserved for Section 8 tenants while the rest cater to market-rate renters. This approach can help balance the financial impact of accepting vouchers with the higher rental rates commanded by the local market. 3. **Evaluate Property Costs Carefully**: Before investing in this ZIP code, carefully evaluate the total cost of ownership, including acquisition costs, maintenance, and operating expenses. Ensure that these costs are aligned with the potential rental income to avoid negative cash flow scenarios. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 85249 is to **skip**. The high price-to-FMR ratio and limited demand for affordable housing make it financially challenging to operate properties profitably under the Section 8 program. Instead, investors should consider areas with a higher percentage of renters and a more favorable price-to-FMR ratio to ensure better returns and cash flow.

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.