Section 8 Fair Market Rent (FMR) for ZIP 85354 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 85354

• City of Phoenix Housing Department (Phoenix, AZ) - 7,983 Section 8 vouchers
• City of Mesa Housing Authority (Mesa, AZ) - 1,833 Section 8 vouchers
• Housing Authority of Maricopa County (Peoria, AZ) - 1,773 Section 8 vouchers
• Tempe Housing Authority (Tempe, AZ) - 1,203 Section 8 vouchers
• City of Glendale Housing Authority (Glendale, AZ) - 1,141 Section 8 vouchers
• Scottsdale Housing Agency (Scottsdale, AZ) - 780 Section 8 vouchers
• Chandler Housing & Redevelopment Division (Chandler, AZ) - 515 Section 8 vouchers
• Arizona Department of Housing (Phoenix, AZ) - 282 Section 8 vouchers
• Arizona Behavioral Health Corporation (Phoenix, AZ) - 194 Section 8 vouchers

To determine if you should buy in ZIP code 85354 for Section 8 investments, follow these steps:

• If the Fair Market Rent (FMR) of $1740 per month covers your debt service:
  • Yes. The FMR is sufficient to cover the monthly mortgage payments on a property valued at $417,095. This ensures that you can meet your financial obligations while maintaining a stable income stream from Section 8 tenants.
• If the FMR of $1740 per month does not cover your debt service:
  • No. Investing in this area would not be financially viable under the current conditions. The rent subsidy provided by Section 8 would not be enough to offset the costs associated with owning a $417,095 property.

The next consideration is comparing the market rent to the FMR:

• If the market rent of $1,395 is below the FMR of $1740:
  • Yes. This indicates that the rental market in ZIP 85354 is undervalued relative to the FMR. As a result, Section 8 properties could potentially offer higher returns compared to market-rate rentals.
• If the market rent of $1,395 is equal to or above the FMR of $1740:
  • It depends. If the market rent equals or exceeds the FMR, the advantage of Section 8 over market-rate rentals diminishes. However, you must still verify if the FMR is adequate to cover your debt service.

Finally, assess the demand for rentals:

• If 15.0% of residents are renters and the days on market (DOM) average is 72 days:
  • Yes. The rental demand in ZIP 85354 appears to be healthy. With a reasonable DOM and a significant portion of the population renting, there is a good chance of finding qualified Section 8 tenants quickly.
• If the percentage of renters or DOM suggests low demand:
  • No. A lower percentage of renters or a higher DOM would indicate weaker demand for rentals, making it harder to find and retain Section 8 tenants.

In summary, buying in ZIP 85354 for Section 8 investments is feasible if the FMR sufficiently covers debt service, the market rent is below the FMR, and there is adequate rental demand. These conditions ensure profitability and stability for landlords and small-portfolio investors.

Data Sources: FMR data from HUD (2027). 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.