Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,700 |
| 1 Bedroom | $1,830 |
| 2 Bedrooms | $2,120 |
| 3 Bedrooms | $2,800 |
| 4 Bedrooms | $3,100 |
| 5 Bedrooms | $3,596 |
| 6 Bedrooms | $4,028 |
| 7 Bedrooms | $4,350 |
| 8 Bedrooms | $4,568 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP 85309 in relation to Section 8 housing reveals several potential issues that landlords should be aware of. Firstly, tenant turnover can be a significant concern when comparing the market rent to the Fair Market Rent (FMR) set at $2420 for FY 2024. The absence of specific market rent data suggests that landlords might face challenges in attracting tenants willing to pay the FMR, leading to higher turnover rates.
Vacancy exposure is another critical risk factor. With no data available on the number of days on market (DOM), it's challenging to predict how quickly units will be filled once they become vacant. This uncertainty can lead to prolonged periods of non-revenue-generating vacancies, impacting cash flow negatively.
Deferred maintenance exposure also poses a threat. Without specific figures on typical home values and median incomes in ZIP 85309, landlords must be prepared for the possibility that tenants receiving Section 8 vouchers may not have additional funds to cover maintenance costs, which can accumulate over time and require substantial investment.
However, these risks are somewhat mitigated by the high renter share in the area. Although the exact percentage is not provided, a high concentration of renters typically translates into greater demand for housing vouchers. This increased demand can stabilize occupancy rates and reduce the likelihood of extended vacancies.
In summary, despite the potential for high tenant turnover and deferred maintenance issues, the high renter density in ZIP 85309 supports a moderate risk level for a first-time Section 8 landlord. The key to success lies in proactive management and maintaining competitive rental pricing relative to the FMR.
Data Sources: FMR data from HUD (2027). 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.