Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,450 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,390 |
| 4 Bedrooms | $2,650 |
| 5 Bedrooms | $3,074 |
| 6 Bedrooms | $3,443 |
| 7 Bedrooms | $3,718 |
| 8 Bedrooms | $3,904 |
U.S. Census Bureau data (2024)
The analysis of Section 8 in ZIP 85256, primarily located within Scottsdale, Arizona, reveals a significant gap between the Fair Market Rent (FMR) set by HUD and the actual market rent. For fiscal year 2024, the FMR is established at $1570, while the market rent, according to the Census ACS, is $564. This gap amounts to $1006, representing a 178% difference.
This substantial disparity indicates that voucher tenants can afford significantly higher rents than those found in the open market. Therefore, properties in ZIP 85256 are a prime opportunity for yield play. The high voucher amounts can cover the market rent and still leave room for profit, making it attractive for landlords and small-portfolio investors.
The median household income in ZIP 85256 is $44,844, which supports the notion that many residents rely on assistance to meet their housing needs. With 18.8% of the population being renters, the demand for affordable housing is evident.
In conclusion, the gap between FMR and market rent makes ZIP 85256 a lucrative area for Section 8 investments. Landlords can benefit from the higher voucher payments while providing affordable housing options to the community.
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.