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 | $1,260 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,070 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,350 | $188,288 | 0.72% | D |
| 2BR | $1,570 | $363,008 | 0.43% | F |
| 3BR | $2,070 | $471,804 | 0.44% | F |
| 4BR | $2,300 | $494,588 | 0.47% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 85375, which encompasses Sun City West, AZ, in Maricopa County, are straightforward when analyzed with the specific figures at hand. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) is set at $1810 for fiscal year 2024. This SAFMR figure is specifically tailored for this ZIP code, ensuring it reflects the local housing market conditions accurately.
The local market rent, as indicated by ZORI (Zillow Observed Rental Index), stands at $1870. This suggests that landlords can expect a slight premium over the SAFMR if they choose to rent outside of the Section 8 program, but the difference is minimal. Landlords participating in the Section 8 program should understand that the reimbursement structure is designed to cover a significant portion of the rent, but not necessarily the entire amount.
A Section 8 voucher holder in ZIP 85375 will typically pay 30% of their adjusted income towards rent. The remainder, up to the SAFMR of $1810, is covered by the Housing Choice Voucher Program. Additionally, there are utility allowances that vary based on the size of the unit and other factors, but these do not directly affect the rent reimbursement.
To illustrate, assume a voucher holder's 30% contribution to the rent is $543. In this case, the government would reimburse the landlord the difference between the SAFMR and the tenant’s contribution, which is $1810 - $543 = $1267. If the local market rent is higher at $1870, then the landlord would be responsible for the remaining $1870 - $1810 = $60, which is the gap between the market rent and the SAFMR.
However, if the local market rent is lower or equal to the SAFMR, the landlord would receive the full SAFMR amount of $1810 without any shortfall. Given the SAFMR and ZORI figures, landlords in ZIP 85375 can anticipate a minor reimbursement gap of $60 per month for a two-bedroom unit if they charge the local market rent. Conversely, if the market rent is lower, they might see a surplus where the SAFMR exceeds the actual market rent.
In summary, for a two-bedroom unit in ZIP 85375, the typical reimbursement gap is $60 per month if the landlord charges the local market rent of $1870. This gap represents the difference between the SAFMR of $1810 and the market rent, which landlords must consider when deciding whether to participate in the Section 8 program.
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.