Section 8 Fair Market Rent (FMR) for ZIP 85302 - 2027

Investment Score for ZIP 85302

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	$1,110
1 Bedroom	$1,200
2 Bedrooms	$1,390
3 Bedrooms	$1,870
4 Bedrooms	$2,120
5 Bedrooms	$2,459
6 Bedrooms	$2,754
7 Bedrooms	$2,974
8 Bedrooms	$3,123

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	$1,390	$246,446	0.56%	F
3BR	$1,870	$369,658	0.51%	F
4BR	$2,120	$423,328	0.5%	F
5BR	$2,459	$472,093	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85302 (Glendale, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Glendale, AZ (ZIP 85302) in 2026 is set at $1530 for a two-bedroom unit. This represents 28.2% of the median household income of $65,132. However, it is important to note that the actual rental market in Glendale is significantly higher. The Zillow median price for a two-bedroom unit is $252,524, which translates into a Price-to-FMR ratio of 13.8x. This means that the average rent for a two-bedroom unit is likely to be much higher than the FMR, creating a significant constraint for Section 8 voucher holders. For instance, if we assume a typical rental rate based on the Zillow median, the actual rent could be around $1,830 per month, which is well above the $1530 FMR. Consequently, voucher holders might struggle to find units that fall within their budget, especially given that the occupancy rate is high at 95.8%, indicating a competitive rental market. #### Affordability & Renter Profile Given that 47.2% of the population in Glendale are renters, the demand for rental properties is substantial. With a median household income of $65,132, the affordability of housing becomes a critical issue. The FMR for a two-bedroom unit at $1530 is only 28.2% of the median income, suggesting that housing is relatively affordable compared to income levels. However, the actual rental rates being 13.8 times the FMR indicate a severe affordability gap. This suggests that the market is tight, with many renters potentially facing financial strain to secure housing. Additionally, the high occupancy rate of 95.8% further underscores the competitive nature of the rental market, making it challenging for renters to find suitable accommodation. #### Investor Angle From an investor’s perspective, the ZIP code 85302 presents a mixed picture. While the occupancy rate is high, indicating strong demand, the actual rental rates far exceed the FMR. For example, a two-bedroom unit renting at $1830 would be significantly above the $1530 FMR. This makes it difficult for Section 8 voucher holders to find units that meet their criteria, thus limiting the pool of potential tenants for investors focusing on Section 8 vouchers. The high Price-to-FMR ratio also implies that the rental market is overpriced relative to what the government considers fair, which could affect the ability to attract voucher holders. To assess whether this ZIP code is cash-flow positive at FMR, we need to consider the typical rental rates versus the FMR. If an investor were to rent a two-bedroom unit at the FMR of $1530, they would likely face challenges in covering operational costs and achieving a positive cash flow, especially when considering the actual rental rates in the area. Given the high actual rental rates, the investment grade for Section 8-focused properties in this ZIP code is low due to the limited number of units that can be rented out at the FMR. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should focus on developing or acquiring lower-rent units such as one-bedroom or studio apartments. These units have FMRs of $1300 and $1190 respectively, which are closer to the actual rental rates for these types of units. This strategy can help maximize the chances of attracting Section 8 voucher holders while maintaining a reasonable cash flow. 2. **Consider Location-Specific Strategies**: Within Glendale, certain neighborhoods may have rental rates closer to the FMR. Conducting a detailed neighborhood-by-neighborhood analysis can identify areas where the actual rental rates are more aligned with the FMR, thereby increasing the likelihood of success for Section 8-focused investments. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide insights into the availability of Section 8 vouchers and the specific needs of voucher holders. This can help tailor marketing efforts and property management practices to better serve this demographic. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP 85302 is to **Skip** this market. The high actual rental rates and the tight rental market make it challenging to find units that can be rented out at the FMR, leading to potential difficulties in attracting voucher holders and achieving positive cash flow. Investors looking to focus on Section 8 vouchers should consider other ZIP codes with rental rates closer to the FMR and less competitive markets.

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.