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 | $1,840 |
| 1 Bedroom | $1,980 |
| 2 Bedrooms | $2,300 |
| 3 Bedrooms | $3,050 |
| 4 Bedrooms | $3,410 |
| 5 Bedrooms | $3,956 |
| 6 Bedrooms | $4,431 |
| 7 Bedrooms | $4,785 |
| 8 Bedrooms | $5,024 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,050 | $443,394 | 0.69% | D |
| 4BR | $3,410 | $597,728 | 0.57% | F |
| 5BR | $3,956 | $823,821 | 0.48% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 85310 reveals a favorable cash flow scenario due to the Federal Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) at $2740 for fiscal year 2024. This figure is notably higher than the market rent, which stands at $2,481 as indicated by ZORI (Zillow Observed Rent Index). The discrepancy suggests that voucher tenants can generate positive cash flow at the FMR level, without the need for premium units.
To further analyze the investment potential, the median home value in ZIP 85310 is $540,481. Using this, we can calculate the rent-to-price ratio, which is approximately 0.46%. This low ratio indicates that rental income represents a small portion of the total property value, making it an attractive proposition for investors looking to leverage their investments through rental income.
Regarding the dynamics between renting and buying, the data shows a median Days on Market (DOM) of N/A days and a price-cut share of 0.4%. These figures suggest that the market for purchasing homes is relatively stable and that there is little pressure to reduce asking prices, which bodes well for long-term investment strategies focusing on stability and appreciation.
In conclusion, the strongest angle for investors in ZIP 85310 is cash flow, given the higher FMR compared to the market rent, coupled with the favorable rent-to-price ratio. However, the potential for appreciation should also be considered due to the stable market conditions and low price-cut share.
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.