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 | $1,480 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,520 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,880 | $596,167 | 0.32% | F |
| 3BR | $2,520 | $1,305,957 | 0.19% | F |
| 4BR | $2,830 | $1,728,127 | 0.16% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 85377, which encompasses Carefree, AZ, and is part of Maricopa County, operate under the Specific Area Fair Market Rent (SAFMR) system. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $2380. This figure is crucial because it represents the maximum amount that a Section 8 voucher can cover for rent in this specific ZIP code.
Local market rents in ZIP 85377, according to the Census ACS, average around $1,538 for a two-bedroom unit. This discrepancy between the SAFMR and the actual market rent is significant and directly impacts how much landlords can expect to receive from a Section 8 voucher.
A Section 8 voucher pays a portion of the rent based on the SAFMR. Specifically, the voucher covers the difference between 30% of the tenant's income and the SAFMR. In ZIP 85377, if a landlord charges $1,538 for a two-bedroom unit, the voucher would cover the full amount, leaving no financial burden on the tenant for rent above their income threshold.
Utility allowances are also factored into the voucher payment. These allowances vary but typically do not exceed the SAFMR. For instance, if the utility allowance is $300, the total voucher reimbursement could reach up to $2680 ($2380 for rent plus $300 for utilities).
To illustrate, consider a tenant whose income is $2,000 per month. Thirty percent of this income is $600, which is far below the SAFMR of $2380. Therefore, the voucher would pay the full rent of $1,538, ensuring the landlord receives the market rate without additional subsidy from the tenant.
In summary, the typical reimbursement for a two-bedroom apartment under a Section 8 voucher in ZIP 85377 leaves a surplus for landlords who charge the average market rate of $1,538. Landlords can expect to receive the full market rent, with the voucher covering the entire amount, thus eliminating any financial gap between the market rate and the SAFMR. This makes participating in Section 8 economically viable for landlords in Carefree, AZ.
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.