Section 8 Fair Market Rent (FMR) for ZIP 85282 - 2027

Investment Score for ZIP 85282

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,440
1 Bedroom	$1,560
2 Bedrooms	$1,810
3 Bedrooms	$2,420
4 Bedrooms	$2,680
5 Bedrooms	$3,109
6 Bedrooms	$3,482
7 Bedrooms	$3,761
8 Bedrooms	$3,949

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,560	$212,842	0.73%	D
2BR	$1,810	$289,227	0.63%	D
3BR	$2,420	$443,833	0.55%	F
4BR	$2,680	$539,176	0.5%	F
5BR	$3,109	$602,303	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85282 (Tempe, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 85282 in Tempe, AZ, for 2026 is set at $2,010 for a two-bedroom unit. This amount represents 30.5% of the median household income in the area, which is $79,036. However, the actual rental market is significantly higher. According to Zillow, the median price for a two-bedroom property is $297,462, which translates to a monthly rent of approximately $1,239 based on a typical mortgage payment (assuming a 4.5% interest rate over 30 years). The price-to-FMR ratio of 12.3x indicates that the median home value is more than twelve times the FMR for a two-bedroom unit. This suggests that actual rents are likely to be well above the FMR, creating significant constraints for voucher holders. For example, a voucher holder might struggle to find a two-bedroom unit renting for $2,010 or less, given the high demand and limited supply of affordable housing. #### Affordability & Renter Profile ZIP code 85282 has a population of 53,624, with 53.0% of residents being renters. This high percentage of renters, combined with an occupancy rate of 92.1%, indicates a tight rental market where demand consistently outstrips supply. The median household income of $79,036 suggests that many residents are middle-class individuals who can afford higher rents but still face affordability challenges. Given the high rent-to-income ratio and the fact that the FMR is only a fraction of the actual median rental price, it is clear that the market is undersupplied with affordable units. This tight market makes it difficult for low-income households to secure housing, especially when they rely on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 85282 presents a challenging environment for cash flow-positive investments at the FMR level. With the FMR for a two-bedroom unit at $2,010 and the actual median rental price being much higher, it is unlikely that an investor would find properties renting at or below the FMR. The price-to-FMR ratio of 12.3x further underscores the difficulty in finding affordable units. Additionally, the high demand and limited supply mean that investors would need to compete with other buyers for properties, potentially driving up purchase costs. Based on these factors, the investment grade for this ZIP code is relatively low for Section 8-focused investors. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as studios or one-bedroom apartments. The FMR for a one-bedroom unit is $1,730, which is closer to the actual rental prices in the area. This could provide better opportunities for cash flow-positive investments. 2. **Target Affordable Housing Projects**: Investors looking to capitalize on the high demand for affordable housing should explore projects that specifically target lower-income households. This could include partnerships with local government agencies or non-profits that aim to increase the availability of affordable units. Such projects might offer incentives or subsidies that make the investment more viable. 3. **Consider Long-Term Appreciation**: While the immediate cash flow potential is limited, the long-term appreciation of properties in Tempe, AZ, could be substantial. The high demand and limited supply suggest that property values are likely to continue rising, providing a strong opportunity for capital gains. #### Bottom Line For investors focused on Section 8 vouchers, the ZIP code 85282 is generally not recommended for new purchases due to the tight rental market and high price-to-FMR ratio. The market dynamics make it difficult to find properties renting at or below the FMR, leading to limited cash flow potential. Instead, investors should consider holding existing properties or exploring smaller units and affordable housing projects. If entering the market, focus on areas with a higher concentration of affordable units or those that are likely to receive government support for increasing affordable housing stock. --- This analysis provides a detailed overview of the rental market dynamics in ZIP code 85282, highlighting key challenges and opportunities for Section 8-focused investors. The high rent-to-income ratio and limited supply of affordable units make it a challenging environment for cash flow-positive investments, but there are still strategic avenues to explore for those willing to adapt their approach.

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.