Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,400 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,300 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
ZIP 85288, located in Unknown, AZ, within the Phoenix-Mesa-Chandler, AZ MSA metro area, serves as a cash-flow anchor in a Section 8 portfolio strategy. The key metric supporting this classification is the spread between the Fair Market Rent (FMR) and the market rent for a one-bedroom apartment. For fiscal year 2024, the FMR is set at $1,880, while the market rent stands at $1,943. This indicates that properties in this ZIP code can be rented at slightly above the FMR, ensuring steady cash flow.
The consistent demand for affordable housing in ZIP 85288 makes it an ideal choice for landlords and small-portfolio investors seeking stable rental income. Given the specific dollar figures, the difference of $63 per month between the FMR and the market rent suggests that landlords can expect a modest but reliable profit margin when renting to Section 8 participants. This is particularly valuable in a competitive market where maintaining occupancy rates is crucial for cash flow stability.
While data on appreciation potential and the percentage of renters and median income are currently unavailable, the focus on cash flow as an anchor is a solid strategic position. It ensures that even if other parts of the investment portfolio experience fluctuations in value or occupancy, the properties in ZIP 85288 will provide a consistent revenue stream. This reliability is essential for financial planning and meeting ongoing obligations such as mortgage payments and property maintenance.
To summarize, ZIP 85288 should be considered a cash-flow anchor within a Section 8 portfolio due to the positive spread between FMR and market rents. This positioning allows investors to rely on steady income from these properties, mitigating risks associated with market volatility in other areas of their investment strategy.
Data Sources: FMR data from HUD (2027).
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.