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 | $1,530 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,520 |
| 4 Bedrooms | $2,790 |
| 5 Bedrooms | $3,236 |
| 6 Bedrooms | $3,624 |
| 7 Bedrooms | $3,914 |
| 8 Bedrooms | $4,110 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,520 | $377,710 | 0.67% | D |
| 4BR | $2,790 | $435,379 | 0.64% | D |
| 5BR | $3,236 | $491,670 | 0.66% | D |
U.S. Census Bureau data (2024)
In ZIP code 85307, the Section 8 economics are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $1990 per month for fiscal year 2024. This figure is specifically tailored for this ZIP code, ensuring that it reflects the local rental market conditions accurately. The local market rent, as measured by ZORI (Zillow Observed Rent Index), is currently at $1523 for a similar unit. This means that the government's SAFMR is higher than the average market rent in the area.
When a landlord participates in the Section 8 program, they receive a subsidy from the Housing Choice Voucher Program to cover part of the rent. The voucher holder contributes a portion of their income towards the rent, which is typically 30% of their adjusted monthly income. For instance, if the voucher holder’s monthly income is $1500, they would pay approximately $450 towards the rent. The remaining amount up to the SAFMR is covered by the housing authority. In this case, the housing authority would reimburse the landlord the difference between the tenant's contribution and the SAFMR.
The utility allowance is also factored into the total compensation. This allowance varies but generally covers the cost of electricity, water, and gas. As of now, there is no specific utility allowance figure provided for ZIP 85307, so it's important to check with the local housing authority for the exact amount. However, let's assume an average utility allowance of $300 for simplicity.
To illustrate, if the tenant pays $450, and the utility allowance is $300, the total amount covered by the tenant and utilities is $750. Therefore, the housing authority would pay the landlord the difference between this total ($750) and the SAFMR ($1990), which amounts to $1240. This means the landlord would receive $1240 from the housing authority plus the $450 from the tenant, totaling $1690 per month.
Given that the market rent is $1523, this results in a surplus for the landlord. The landlord would receive $167 more than the market rent, indicating that participating in the Section 8 program in ZIP 85307 can be financially beneficial. However, landlords should also consider the administrative requirements and potential maintenance costs associated with the program when making their decision.
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.