Section 8 Fair Market Rent (FMR) for ZIP 85296 - 2027

Investment Score for ZIP 85296

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	$1,840
1 Bedroom	$1,970
2 Bedrooms	$2,290
3 Bedrooms	$3,020
4 Bedrooms	$3,350
5 Bedrooms	$3,886
6 Bedrooms	$4,352
7 Bedrooms	$4,700
8 Bedrooms	$4,935

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,290	$373,479	0.61%	D
3BR	$3,020	$463,706	0.65%	D
4BR	$3,350	$602,533	0.56%	F
5BR	$3,886	$821,114	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85296 (Gilbert, AZ) #### Section 8 Voucher Dynamics In Gilbert, AZ (ZIP 85296), the Fair Market Rent (FMR) figures for 2026 are as follows: - 0BR: $1960 - 1BR: $2130 - 2BR: $2470 (which is 24.9% of the median household income) - 3BR: $3290 - 4BR: $3650 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, comparing these figures to actual rents in the area reveals significant disparities. The Zillow median price for a 2BR home in this ZIP code is $360,306, which translates into a rental cost that is approximately 12.2 times the FMR for a 2BR unit. This high price-to-FMR ratio indicates that actual rents are substantially higher than what the vouchers cover, creating a constraint for voucher holders who may struggle to find affordable housing within their budget. #### Affordability & Renter Profile The population of Gilbert, AZ, is 53,076, with 31.1% of residents being renters. The median household income stands at $118,982, which suggests that the area has a relatively affluent demographic. Given that the FMR for a 2BR unit is only 24.9% of the median income, it implies that the majority of renters can afford higher rents than those covered by the vouchers. This makes the market quite tight for low-income renters who rely on Section 8 vouchers, as there is limited supply of units available at or below the FMR rates. The occupancy rate of 95.2% further supports the notion that the rental market is robust and well-occupied, indicating a strong demand for rental properties. With such a high occupancy rate, landlords have little incentive to lower rents, especially when the actual rental costs far exceed the FMR. #### Investor Angle From an investor perspective, the ZIP code 85296 presents a challenging scenario for cash flow if relying solely on FMR rates. The high price-to-FMR ratio means that rental properties priced at FMR levels would likely generate very low returns, if any. For instance, a 2BR unit renting at $2470 per month would be significantly less profitable compared to the actual market rate, which could be upwards of $20,000 annually based on the Zillow median price. Given the high median household income and the tight rental market, it is unlikely that many properties will be rented out at FMR levels. Therefore, the investment grade for this ZIP code, particularly for Section 8-focused investors, is relatively low due to the limited number of units that can be rented at FMR rates and the resulting low cash flow potential. #### Specific Actionable Insights 1. **Target Higher-Income Renters**: Given the high median household income and the tight rental market, investors should consider targeting higher-income renters rather than focusing exclusively on Section 8 vouchers. This strategy would likely yield better returns and align with the local economic conditions. 2. **Develop or Renovate Properties**: Investors might benefit from developing new rental properties or renovating existing ones to meet the needs of the affluent demographic. This could include adding amenities like high-speed internet, modern appliances, and energy-efficient features, which would justify higher rental prices. 3. **Consider Short-Term Rentals**: Due to the high occupancy rate and limited availability of affordable units, short-term rentals (like vacation homes or Airbnbs) could be a viable alternative. This approach can help maximize revenue given the high demand for housing in the area. #### Bottom Line For investors focused specifically on Section 8 vouchers, the recommendation is to **skip** this ZIP code. The high price-to-FMR ratio and the limited supply of units that can be rented at FMR levels make it a challenging environment for generating positive cash flow. Instead, investors should look towards areas with lower FMR ratios and more affordable housing options to maximize their returns while still serving low-income renters effectively.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.