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 | $1,080 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $248,603 | 0.56% | F |
| 3BR | $1,870 | $331,574 | 0.56% | F |
| 4BR | $2,120 | $381,272 | 0.56% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 85363, which includes Youngtown, Arizona, stands at $68,321. The market rate for rent, known as the Zillow Observed Rent Index (ZORI), is set at $1,416. This figure represents the average rent paid by tenants in the area, based on current market conditions.
In comparison, the Fair Market Rent (FMR) for the fiscal year 2024, which is used as a benchmark for housing voucher payments, is $1,570. This means that households receiving vouchers could potentially pay slightly above the market rate, providing landlords with an incentive to accept vouchers despite the administrative overhead.
With 35.9% of the population renting and a total population of 7,015, there is a significant segment of the community looking for affordable housing options. The disparity between the median income and the rental rates, whether market-based or through vouchers, highlights a notable affordability gap for many residents.
This gap has implications for landlord competition. Landlords who are willing to accept vouchers may find themselves with a more stable tenant base, as voucher holders have financial support to ensure timely rent payments. However, those focusing on cash-paying tenants might face challenges in attracting and retaining renters due to the high cost of living relative to income levels.
The takeaway for landlords considering their strategy is clear: accepting vouchers can be a viable option to fill vacancies and secure steady rental income, especially given the slight premium over the market rate. For those preferring cash-paying tenants, it will be crucial to offer competitive pricing and value-added services to attract and retain renters in a market where affordability is a pressing concern.
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.