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 | $2,080 |
| 1 Bedroom | $2,240 |
| 2 Bedrooms | $2,600 |
| 3 Bedrooms | $3,430 |
| 4 Bedrooms | $3,800 |
| 5 Bedrooms | $4,408 |
| 6 Bedrooms | $4,937 |
| 7 Bedrooms | $5,332 |
| 8 Bedrooms | $5,599 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,600 | $842,234 | 0.31% | F |
| 3BR | $3,430 | $1,199,190 | 0.29% | F |
| 4BR | $3,800 | $1,572,949 | 0.24% | F |
| 5BR | $4,408 | $1,915,366 | 0.23% | F |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 85266, located in Scottsdale, Arizona, offers a detailed snapshot of rental dynamics compared to the Fair Market Rent (FMR) set by HUD. For fiscal year 2024, HUD has established the FMR at $2820 for this zip code. This figure stands notably below the current market rent, which is reported at $4250 according to ZORI (Zillow's Observed Rent Index).
Voucher tenants in this area will only cashflow at the FMR level with premium units. The significant gap between the HUD FMR and the actual market rent means that landlords must offer higher-end properties to achieve positive cash flow when renting to voucher holders. This dynamic highlights the necessity for landlords to focus on units with above-average amenities and quality to attract these tenants.
To further contextualize the rental landscape, consider the median home value in ZIP 85266, which stands at $1,293,287. Using this figure, we can derive a rent-to-price ratio of approximately 0.33%, indicating that rental income is relatively low compared to the overall value of homes in the area. However, this ratio does not fully capture the potential investment attractiveness of the market, given the high median home values and the robust demand for rental properties.
The median Days on Market (DOM) for homes in this zip code is 43 days, with a price-cut share of just 0.3%. These metrics suggest a strong seller's market where homes sell quickly and without needing to be discounted. While these figures primarily reflect the buying market, they indirectly influence the rental market by indicating a vibrant economy and steady population growth, factors that support stable rental demand.
The strongest investor angle in Scottsdale's ZIP 85266 is likely appreciation. Given the high median home values and the strong seller's market, it is reasonable to expect that property values will continue to rise over time. This makes the area particularly attractive for long-term investors who are willing to manage their cash flow carefully while benefiting from potential capital gains.
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.