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 | $2,080 |
| 1 Bedroom | $2,240 |
| 2 Bedrooms | $2,600 |
| 3 Bedrooms | $3,430 |
| 4 Bedrooms | $3,800 |
| 5 Bedrooms | $4,408 |
| 6 Bedrooms | $4,937 |
| 7 Bedrooms | $5,332 |
| 8 Bedrooms | $5,599 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,600 | $526,105 | 0.49% | F |
| 3BR | $3,430 | $729,266 | 0.47% | F |
| 4BR | $3,800 | $951,864 | 0.4% | F |
| 5BR | $4,408 | $1,195,314 | 0.37% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 85331, located in Cave Creek, Arizona, can be analyzed through the lens of yield and stability. The yield in this area is driven by the Fair Market Rent (FMR) of $2,820, which is lower than the market rent of $3,297 but significantly higher when compared to the average home value of $834,461. This suggests that while the rental rates are competitive, the overall property values are quite high, indicating a market where the potential for rental income is modest relative to the cost of investment.
On the stability axis, several factors come into play. First, the percentage of renters at 7.4% is relatively low, suggesting a primarily owner-occupied community. This characteristic can make it challenging to find tenants, especially in a competitive market. Second, the days on market (DOM) of 39 days indicates a moderate turnover rate for rentals, neither extremely quick nor slow, which could imply a balanced market but also some variability in finding suitable tenants. Lastly, the median household income of $129,083 is quite high, which generally supports stability in rental payments and a lower risk of default.
Based on these figures, ZIP 85331 does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it represents a niche market that balances between the two. While the high home values and low renter population suggest lower stability due to the difficulty in finding tenants, the robust median income provides a counterbalance, ensuring that those who do rent are likely to maintain consistent payments. The relatively low FMR compared to market rent also hints at potential for slight increases in rental income, but the high property values limit the overall yield.
To summarize, ZIP 85331 offers a moderate yield scenario with a slightly skewed stability profile towards the lower end, primarily due to the low renter percentage. However, the high median income mitigates some of the risks associated with tenant turnover and default. For landlords and small-portfolio investors, this area presents an opportunity for steady cash flow with some room for cautious optimism regarding rental price adjustments.
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.