Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,350 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,690 | $297,045 | 0.57% | F |
| 3BR | $2,230 | $366,457 | 0.61% | D |
| 4BR | $2,470 | $409,155 | 0.6% | D |
| 5BR | $2,865 | $493,601 | 0.58% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 85303, located in Glendale, Arizona, within Maricopa County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $1810 for fiscal year 2024. This specific rate is tailored for this ZIP code, reflecting the local rental market conditions.
Local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $1854. This indicates that the SAFMR is slightly below the actual market rent, creating a scenario where landlords might need to consider the financial implications carefully.
A Section 8 voucher payment consists of two parts: the tenant's contribution and the subsidy provided by the government. The tenant's portion is typically 30% of their income, which must be at least 30% of the SAFMR. For simplicity, let’s assume the tenant’s contribution is exactly 30%. Therefore, if the SAFMR is $1810, the tenant would pay $543 ($1810 * 0.3).
The government then covers the remaining balance up to the SAFMR. In this case, the reimbursement would be $1267 ($1810 - $543). However, it's important to note that there are also utility allowances to factor in. Utility allowances vary but generally add an additional $200 to $300 per month to the reimbursement amount. Assuming an average utility allowance of $250, the total reimbursement to the landlord would be $1517 ($1267 + $250).
This means that for a two-bedroom apartment in ZIP 85303, the landlord would receive a reimbursement of $1517 from the government plus the $543 paid by the tenant, totaling $2060. Given the local market rent of $1854, the landlord would see a surplus of $206 ($2060 - $1854) per month.
To summarize, landlords participating in the Section 8 program for a two-bedroom unit in ZIP 85303 can expect a reimbursement of $1517 from the government, plus the tenant's contribution of $543, making a total of $2060. This results in a surplus of $206 compared to the local market rent of $1854.
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.