Section 8 Fair Market Rent (FMR) for ZIP 85286 - 2027

Investment Score for ZIP 85286

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	$1,780
1 Bedroom	$1,910
2 Bedrooms	$2,220
3 Bedrooms	$2,930
4 Bedrooms	$3,260
5 Bedrooms	$3,782
6 Bedrooms	$4,236
7 Bedrooms	$4,575
8 Bedrooms	$4,804

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
2BR	$2,220	$365,203	0.61%	D
3BR	$2,930	$507,127	0.58%	F
4BR	$3,260	$649,217	0.5%	F
5BR	$3,782	$811,129	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85286 (Chandler, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 85286 in Chandler, Arizona, for 2026 is set at $2440 for a two-bedroom unit, which represents 24.0% of the median household income of $121,758. This means that a tenant using a Section 8 voucher can afford a rent of up to $2440 per month for a two-bedroom unit. However, the Zillow median price for a two-bedroom unit in this area is $373,794, indicating a significant disparity between the FMR and the actual market value of properties. The price-to-FMR ratio of 12.8x suggests that the actual rental costs are far above the FMR levels, making it challenging for voucher holders to find suitable housing within their budget constraints. For instance, a three-bedroom unit has an FMR of $3250, but the market value would likely be much higher, potentially exceeding what many voucher holders can afford. #### Affordability & Renter Profile The population of ZIP 85286 is 50,621, with 34.6% being renters. Given the high median household income and the occupancy rate of 97.5%, it is clear that this is a highly sought-after residential area with limited availability. The tight market conditions mean that there is a strong demand for rental units, which could drive up rental prices further. The high median household income also implies that the typical renter profile is likely to be middle to upper-middle class individuals who can afford higher rents. This makes the market particularly challenging for low-income families relying on Section 8 vouchers, as they might struggle to find landlords willing to accept vouchers due to the gap between FMR and market rents. #### Investor Angle From an investor perspective, the ZIP code 85286 presents a mixed scenario. While the high occupancy rate and strong demand for rental units suggest a robust market, the significant difference between the FMR and the actual market rents poses challenges. For example, a two-bedroom unit with an FMR of $2440 might have a market rent closer to $373,794 based on the Zillow median price, making it difficult to achieve positive cash flow when adhering strictly to FMR guidelines. Additionally, the high price-to-FMR ratio of 12.8x indicates that properties in this area are overvalued relative to the FMR, which could impact the overall investment grade negatively. Investors focusing on Section 8 vouchers will need to carefully consider the potential for lower-than-market rental income and the likelihood of finding tenants willing to accept these vouchers. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties with lower rents that are closer to the FMR levels. For instance, a one-bedroom unit with an FMR of $2100 might be more feasible for achieving positive cash flow while still attracting tenants using Section 8 vouchers. This approach can help mitigate the risk associated with the high price-to-FMR ratio. 2. **Consider Mixed-Income Developments**: Developing mixed-income housing projects can be a strategic move. By offering a mix of units priced at or below FMR alongside higher-priced units, investors can cater to both voucher holders and market-rate tenants. This diversification can improve overall cash flow and reduce the financial burden of accepting lower rents. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide insights into the demand for Section 8 vouchers in the area. This can help investors understand the dynamics of the voucher program and identify opportunities where they can offer competitive rents that align with FMR guidelines. #### Bottom Line Given the high price-to-FMR ratio and the tight market conditions in ZIP code 85286, the recommendation for Section 8-focused investors is to **Skip** this area. The significant gap between FMR and market rents makes it challenging to achieve positive cash flow while adhering to voucher program guidelines. Instead, investors might want to explore other ZIP codes with a more favorable price-to-FMR ratio and less stringent market conditions.

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.