Section 8 Fair Market Rent (FMR) for ZIP 85339 - 2027

Investment Score for ZIP 85339

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,800
1 Bedroom	$1,940
2 Bedrooms	$2,250
3 Bedrooms	$2,970
4 Bedrooms	$3,290
5 Bedrooms	$3,816
6 Bedrooms	$4,274
7 Bedrooms	$4,616
8 Bedrooms	$4,847

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,250	$326,972	0.69%	D
3BR	$2,970	$398,228	0.75%	D
4BR	$3,290	$447,132	0.74%	D
5BR	$3,816	$505,740	0.75%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85339 (Phoenix, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 85339 in Phoenix, AZ, for a two-bedroom apartment is set at $2,420 per month in 2026. This represents 26.3% of the median household income of $110,602. The actual rental market price for a two-bedroom unit is significantly higher, with Zillow reporting a median price of $329,092. This translates to a price-to-FMR ratio of 11.3x, indicating that actual market rents are much higher than the FMR. For Section 8 voucher holders, the FMR serves as a benchmark for the maximum rent subsidy they can receive. However, given the high actual market rents, voucher holders face significant constraints. They must find landlords willing to accept the voucher amount, which is often below the market rate. Additionally, the limited number of units available at or below the FMR means that voucher holders may struggle to secure housing in this area. #### Affordability & Renter Profile ZIP code 85339 has a relatively low renter percentage of 18.0%, suggesting that it is primarily a homeowner-dominated market. The occupancy rate stands at 97.3%, indicating a tight rental market where most available units are occupied. Given the high median household income of $110,602, renters in this area are likely to be middle to upper-middle class individuals or families who can afford higher rents but may still benefit from the lower FMR rates. The tight rental market implies that there is a strong demand for rental properties, but the supply is limited. This dynamic makes it challenging for voucher holders to find affordable housing options since most units are priced well above the FMR. #### Investor Angle From an investor perspective, the ZIP code 85339 presents a mixed scenario. While the actual market rents are high, the FMR rates are significantly lower. To determine if this ZIP code is cash-flow positive for Section 8-focused investors, we need to consider the typical rental yields and expenses. Given the Zillow median price for a two-bedroom unit at $329,092, the monthly mortgage payment on a 30-year fixed-rate loan at a 4% interest rate would be approximately $1,520. Adding typical property management fees (around 10% of rent), maintenance costs, and other expenses, the total monthly cost could range from $1,800 to $2,000. At the FMR rate of $2,420, the net cash flow would be positive, ranging from $420 to $620 per month. However, the investment grade depends on the likelihood of finding tenants who can pay the FMR rates. In a tight market like 85339, where actual rents are much higher, the pool of potential Section 8 tenants may be smaller. Investors should also consider the potential challenges of managing properties under the Section 8 program, including stricter regulations and longer lease terms. #### Specific Actionable Insights 1. **Target Lower-Rent Units**: Focus on developing or acquiring properties that cater to the lower end of the rental market, specifically those that fall within the FMR guidelines. For example, a three-bedroom unit with an FMR of $3,230 might be more attractive to voucher holders compared to a four-bedroom unit at $3,580. 2. **Consider Multi-Family Properties**: Given the high actual market rents, multi-family properties may offer a better balance between cash flow and the ability to attract Section 8 tenants. A building with multiple units allows for diversification and potentially higher overall returns. 3. **Engage with Local Real Estate Agents**: Work closely with local real estate agents who have experience with Section 8 tenants. They can provide valuable insights into the local rental market dynamics and help identify properties that are more likely to attract voucher holders. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 85339 is to **Hold**. While the FMR rates suggest potential profitability, the tight rental market and high actual market rents make it challenging to find enough Section 8 tenants to fill all units. Investors should carefully evaluate the local rental landscape and consider targeting lower-rent units or multi-family properties to maximize their chances of success.

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.