Section 8 Fair Market Rent (FMR) for ZIP 85353 - 2027

Investment Score for ZIP 85353

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	$1,490
1 Bedroom	$1,600
2 Bedrooms	$1,860
3 Bedrooms	$2,450
4 Bedrooms	$2,720
5 Bedrooms	$3,155
6 Bedrooms	$3,534
7 Bedrooms	$3,817
8 Bedrooms	$4,008

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$2,450	$368,846	0.66%	D
4BR	$2,720	$405,897	0.67%	D
5BR	$3,155	$449,196	0.7%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85353 (Tolleson, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 85353, as set by HUD for 2026, ranges from $1570 for a zero-bedroom unit to $2930 for a four-bedroom unit. The most relevant figure for many families is the two-bedroom unit, which has an FMR of $1980. This amount represents 25.2% of the median household income in Tolleson, which stands at $94,154. However, the actual rental market in Tolleson is significantly higher. According to Zillow, the median price for a two-bedroom home is $288,932, which translates to a monthly rent of approximately $1220 based on typical mortgage payments. This implies that the actual market rent for a two-bedroom unit would be much higher, likely closer to the FMR range but still above what many voucher holders can afford. The price-to-FMR ratio of 12.2x indicates that the market value of homes is far beyond the rental rates set by FMR, suggesting that voucher holders face significant challenges in finding affordable housing within their budget. #### Affordability & Renter Profile With a population of 49,120, Tolleson has a relatively high occupancy rate of 95.7%, indicating that the housing stock is largely occupied. Given that 30.7% of residents are renters, the rental market is quite active. However, the high price-to-FMR ratio suggests that the market is tight, especially for those relying on Section 8 vouchers. The median household income of $94,154 is relatively strong, but it also means that the majority of residents are not dependent on government assistance for housing. For voucher holders, the $1980 FMR for a two-bedroom unit is a critical benchmark. Given that the median home price for a two-bedroom property is $288,932, the actual rental costs would likely exceed the FMR. This makes it difficult for voucher holders to find suitable housing, as landlords may prefer higher-paying tenants who do not require vouchers. Additionally, the high occupancy rate could exacerbate the challenge of securing a rental unit within the voucher limit. #### Investor Angle From an investor’s perspective, the ZIP code 85353 offers a mixed picture. While the FMRs provide a guideline for rental pricing, the actual market dynamics suggest that properties could command higher rents. For instance, a two-bedroom unit priced at $1980 might actually fetch around $2400-$2800 in the open market, given the high price-to-FMR ratio. This means that an investor targeting Section 8 voucher holders would need to ensure that their rental units are priced at or below the FMR to attract these tenants. At the FMR levels, the cash flow would be modest, particularly when compared to the potential rental income in a competitive market. The investment grade would be moderate due to the tight market conditions and the challenge of attracting voucher holders. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should consider focusing on zero-bedroom and one-bedroom units, where the FMRs are lower ($1570 and $1700 respectively). These units are more likely to be rented by voucher holders, providing a stable source of income. 2. **Develop Relationships with Local Agencies**: Building relationships with local housing authorities and agencies can help secure a steady stream of voucher holders. This is crucial because the tight market makes it harder to find tenants willing to accept the FMR rates. 3. **Consider Property Upgrades**: Given the high occupancy rate and strong median income, there may be opportunities to upgrade older properties to meet modern standards, potentially increasing their appeal to both voucher holders and other renters. This could involve improvements like energy-efficient appliances, modern kitchen fixtures, or updated bathrooms. #### Bottom Line For Section 8-focused investors, the ZIP code 85353 presents a challenging environment. The tight market and high price-to-FMR ratio make it difficult to find properties that can be rented profitably at FMR levels. Therefore, the recommendation is to **Skip** this ZIP code unless you can secure properties at a discount or have a strategic advantage in attracting voucher holders through partnerships with local agencies. If you decide to invest, focus on smaller units and consider property upgrades to enhance tenant attraction and retention.

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.