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 | $1,510 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,750 |
| 5 Bedrooms | $3,190 |
| 6 Bedrooms | $3,573 |
| 7 Bedrooms | $3,859 |
| 8 Bedrooms | $4,052 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,880 | $283,756 | 0.66% | D |
| 3BR | $2,480 | $330,163 | 0.75% | D |
| 4BR | $2,750 | $361,361 | 0.76% | D |
| 5BR | $3,190 | $414,816 | 0.77% | D |
U.S. Census Bureau data (2024)
The ZIP code 85335, located in El Mirage, Arizona, presents an interesting mix of yield and stability for real estate investors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,720, which is slightly below the market rent of $1,899. This indicates that there is potential for above-average rental yields if properties can be leased out at market rates. However, the median home value in the area is $342,465, suggesting that the initial investment required for acquiring a property is relatively high.
In terms of stability, the area has a significant portion of renters, with 30.3% of the population being tenants. While this percentage is not extraordinarily high, it does provide a decent level of demand for rental properties. Additionally, the average days on market (DOM) for rentals stands at 21 days, which is quite low and indicative of a strong demand for housing in the area. This short DOM period suggests that once a property is listed, it will likely be rented quickly, reducing the risk of vacancy.
The median household income in ZIP 85335 is $78,050, which provides insight into the financial capacity of the local residents. Although this figure is not exceptionally high, it is sufficient to support rental prices around the FMR and possibly slightly above, given the market conditions.
To classify this market, we must consider both yield and stability. On the yield side, the potential to lease at market rates above the FMR offers opportunities for higher returns. However, the relatively high median home value means that the capital required for entry is substantial, which could limit the overall yield percentage when compared to the purchase price.
On the stability axis, the presence of a significant rental population and quick leasing times suggest a stable market with low risk of prolonged vacancies. The income levels also support a steady demand for rental properties, ensuring a consistent cash flow.
Given these factors, ZIP 85335 would best be classified as a steady-cashflow zone. While it does offer some potential for higher yields through strategic pricing, the combination of a reasonable rental population and quick turnover rates points towards a market that is reliable and less prone to the volatility seen in high-yield/low-stability markets. Investors should expect a balance between solid returns and dependable occupancy rates.
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.