Section 8 Fair Market Rent (FMR) for ZIP 85252 - 2027
Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA
FY 2027 Fair Market Rent Rates
| 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 |
To determine if a landlord should buy in ZIP 85252 for Section 8 purposes, follow these steps:
- Does the Fair Market Rent (FMR) of $1880 cover the debt service on a property?
- Yes: If the FMR of $1880 is sufficient to cover the mortgage payments, taxes, insurance, and other expenses associated with owning the property, then it makes financial sense to consider purchasing for Section 8 tenants.
- No: If the FMR of $1880 does not meet the required debt service coverage, purchasing a property in this area for Section 8 would result in a financial loss. Landlords should seek areas with higher FMRs.
- Is the market rent above, at, or below the FMR?
- Above FMR: If the average market rent exceeds the FMR of $1880, landlords might find it challenging to attract tenants willing to pay only up to the FMR. This could lead to prolonged vacancies.
- At FMR: If the market rent aligns closely with the FMR, the property will likely be competitive, attracting both regular and Section 8 tenants.
- Below FMR: If the market rent is below the FMR, the property is an attractive option for all tenants, including those on Section 8, which can ensure steady occupancy.
- Are there enough renters and a reasonable number of days on the market (DOM)?
- It Depends: Without specific percentages of renters and DOM figures, it's difficult to assess demand. However, generally speaking, a high percentage of renters combined with a low DOM indicates strong demand. Conversely, a low percentage of renters and a high DOM suggest weak demand.
The key data point is whether the FMR of $1880 covers the debt service. The relationship between market rent and FMR guides tenant attractiveness, while the combination of rental rates and DOM informs about the overall demand. In ZIP 85252, without precise figures for market rent and DOM, the decision hinges on the first two criteria.
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.