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 | $1,810 |
| 1 Bedroom | $1,950 |
| 2 Bedrooms | $2,290 |
| 3 Bedrooms | $3,040 |
| 4 Bedrooms | $3,380 |
| 5 Bedrooms | $3,921 |
| 6 Bedrooms | $4,392 |
| 7 Bedrooms | $4,743 |
| 8 Bedrooms | $4,980 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,290 | $658,980 | 0.35% | F |
| 3BR | $3,040 | $927,004 | 0.33% | F |
| 4BR | $3,380 | $1,013,811 | 0.33% | F |
U.S. Census Bureau data (2024)
The renter's landscape in ZIP 85263, Rio Verde, AZ, is defined by a median income of $145,053. This financial stability allows households to meet the market rate rental cost of $2,332 per month, according to the latest Census ACS data. However, when comparing this market rate to the Federal Market Rate (FMR) for Housing Choice Vouchers, which stands at $1880 for the fiscal year 2024, it becomes evident that there is a significant affordability gap.
In Rio Verde, only 4.7% of the total population of 3,472 are renters. This low percentage suggests a competitive environment for landlords, as there are fewer potential tenants relative to the number of available units. The disparity between the market rate and the voucher payment rate means that landlords must consider their options carefully. Accepting vouchers can provide a steady stream of tenants but at a lower payment rate compared to the market.
The takeaway for landlords considering whether to accept voucher tenants or focus on cash-paying renters is clear. While cash-paying renters offer higher monthly income, they also come with the challenge of competing in a market with limited demand. Vouchers, although paying less at $1880, ensure a consistent and stable tenant base. Landlords should weigh these factors against their own financial needs and the overall demand for rentals in Rio Verde.
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.