Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,560 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,570 |
| 4 Bedrooms | $2,850 |
| 5 Bedrooms | $3,306 |
| 6 Bedrooms | $3,703 |
| 7 Bedrooms | $3,999 |
| 8 Bedrooms | $4,199 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,950 | $513,671 | 0.38% | F |
| 3BR | $2,570 | $858,121 | 0.3% | F |
| 4BR | $2,850 | $1,378,138 | 0.21% | F |
| 5BR | $3,306 | $2,054,267 | 0.16% | F |
U.S. Census Bureau data (2024)
2080 is the Fair Market Rent (FMR) for ZIP code 85259 in Scottsdale, AZ, for fiscal year 2024, indicating the maximum amount a Section 8 tenant can pay for housing. In contrast, the market rent, known as ZORI, stands at 2283, suggesting a slight premium landlords can expect over the FMR if they choose not to participate in the program. The median home value in the area is 1143686, which places it among the higher-value residential zones in the region, appealing to those seeking stable investments in upscale neighborhoods. With a 22.5% renter share, there's a notable portion of the population leasing properties, creating a steady demand for rental units. The median income of 137895 provides insight into the financial capacity of residents, supporting the higher rental rates and property values observed in the area. A 36-day DOM, or days on market, indicates a brisk pace for property sales, reflecting the desirability and quick turnover of homes in Scottsdale. The 0.3% price-cut share suggests that once listed, homes rarely need to be discounted, further underscoring the robustness of the local real estate market.
Given these figures, the participation in the Section 8 program for landlords and small-portfolio investors in Scottsdale, AZ, appears less favorable due to the premium market rents compared to the FMR. However, the strong demand and high property values make the area attractive for traditional rentals and home purchases. For those considering the Section 8 program, the verdict is cautious; while it ensures a steady stream of tenants, the rental rates may not fully capitalize on the market's potential.
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.