Section 8 Fair Market Rent (FMR) for ZIP 85373 - 2027

Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA

Investment Score for ZIP 85373

Monthly Rent (2BR)

$1,820

Median Price (2BR)

$316,551

1% Rule

0.57%

Annual Yield

6.9%

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	$1,460
1 Bedroom	$1,570
2 Bedrooms	$1,820
3 Bedrooms	$2,400
4 Bedrooms	$2,660
5 Bedrooms	$3,086
6 Bedrooms	$3,456
7 Bedrooms	$3,732
8 Bedrooms	$3,919

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	$1,820	$316,551	0.57%	F
3BR	$2,400	$406,761	0.59%	F
4BR	$2,660	$464,356	0.57%	F
5BR	$3,086	$541,883	0.57%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

20,254

Median Household Income

$72,063

Housing Units

10,664

Renter Percentage

11.6%

Occupancy Rate

87.3%

Renter Occupied

1,076

Sun City, Arizona, represented by ZIP code 85373, is a vibrant retirement community located in the northwest corner of Phoenix. Known for its warm climate and active lifestyle, it attracts a significant number of retirees and families alike, making it a prime location for real estate investment. Here’s a concise market analysis based on key metrics:

The Fair Market Rent (FMR) for the area is set at $1960 for fiscal year 2024, indicating the average rental cost supported by federal guidelines.
The actual market rent, measured by Zillow's ZORI index, stands at $1,913, slightly below the FMR but still reflective of strong demand.
The median home value in Sun City is $366,449, providing a solid base for property investments.
Renters make up 11.6% of the housing market, suggesting a relatively stable owner-occupied environment.
The Days on Market (DOM) for rentals is 39 days, which is quite efficient, showing that properties are quickly occupied once listed.
The median household income in the area is $72,063, ensuring that tenants have the financial stability to meet rental obligations.

The data points above suggest that Sun City offers a balanced real estate market with a slight edge towards rental stability. The close alignment between FMR and ZORI indicates a healthy rental environment, while the median home value and median income figures support a robust economic foundation. However, the low renter share might limit the pool of potential tenants, though the quick turnover rate for rentals is reassuring. For investors, this means focusing on quality properties that can attract the financially secure residents of Sun City.

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.