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 | $1,240 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,550 | $280,056 | 0.55% | F |
| 3BR | $2,040 | $385,257 | 0.53% | F |
| 4BR | $2,270 | $444,613 | 0.51% | F |
| 5BR | $2,633 | $593,805 | 0.44% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP code 85304 in Glendale, AZ, are significant. First, consider the market dynamics: the average market rent is $2,135, while the Fair Market Rent (FMR) for FY 2024 is set at $1,820. This gap suggests that tenants might struggle to afford higher rents, leading to increased tenant turnover. High turnover rates can be costly, as they involve frequent maintenance, cleaning, and administrative tasks.
Vacancy exposure is another concern, given that the days on market (DOM) average is 28 days. This relatively short period indicates a competitive rental market, where landlords might face challenges in filling vacancies quickly if their properties are priced above the FMR. The longer a property remains vacant, the greater the financial strain on the landlord, as they still incur expenses such as mortgage payments and property taxes.
Deferred maintenance poses a substantial risk as well. With an average home value of $405,068 and a median household income of $86,927, landlords must be prepared to invest in regular upkeep and repairs. Tenants with limited financial resources might not prioritize these needs, leaving landlords responsible for maintaining the property's condition and compliance with housing standards.
However, these risks are offset by the high concentration of renters in the area. ZIP 85304 has an 18.9% renter share, which typically translates into higher demand for Section 8 vouchers. This demand can provide a steady stream of qualified tenants who are committed to paying their rent on time, reducing the likelihood of extended vacancies.
In conclusion, the verdict for a first-time Section 8 landlord in ZIP 85304 is moderate risk. While there are significant challenges related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter density offers a promising opportunity to find reliable tenants.
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.