Section 8 Fair Market Rent (FMR) for ZIP 85379 - 2027

Investment Score for ZIP 85379

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	$1,730
1 Bedroom	$1,860
2 Bedrooms	$2,160
3 Bedrooms	$2,850
4 Bedrooms	$3,160
5 Bedrooms	$3,666
6 Bedrooms	$4,106
7 Bedrooms	$4,434
8 Bedrooms	$4,656

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,160	$311,155	0.69%	D
3BR	$2,850	$375,904	0.76%	D
4BR	$3,160	$443,206	0.71%	D
5BR	$3,666	$536,273	0.68%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85379 (Surprise, AZ) #### Section 8 Voucher Dynamics In ZIP code 85379, the Fair Market Rent (FMR) for a two-bedroom unit is set at $2350 per month. This figure represents 25.5% of the median household income of $110,616, which indicates that the rent is relatively affordable for the average resident. However, when comparing the FMR to actual rents, we see a significant discrepancy. The Zillow median price for a two-bedroom home is $314,400, translating to a monthly mortgage payment of approximately $1,500 based on typical financing terms. Adding property taxes, insurance, and maintenance costs can bring the total monthly cost closer to $2,000, still below the FMR of $2350. Despite this, voucher holders face constraints due to the limited number of units available at or below the FMR. The occupancy rate of 97.5% suggests that there is little vacancy, making it challenging for voucher holders to find suitable housing. Additionally, the 24.6% renter population implies that there is a smaller pool of potential tenants who might accept Section 8 vouchers. #### Affordability & Renter Profile The median household income in Surprise, AZ (ZIP 85379) is $110,616, which is quite high compared to many other areas in the United States. Given that the FMR for a two-bedroom unit is $2350, this represents only 25.5% of the median income, indicating that most residents can afford to pay market rates for housing. The renter percentage of 24.6% is relatively low, suggesting that homeownership is more prevalent in this area. This high median income and low renter percentage imply that the rental market is tight and potentially competitive. Landlords may have the luxury of setting higher rents, knowing that they will be able to attract tenants willing to pay above the FMR. The 97.5% occupancy rate further supports this conclusion, as it indicates that almost all units are occupied, leaving little room for negotiation on rent prices. #### Investor Angle From an investor perspective, the ZIP code 85379 offers a mixed picture. While the FMR for a two-bedroom unit is $2350, the actual market rent is significantly higher. The Zillow median price for a two-bedroom home is $314,400, which translates to a monthly mortgage payment of around $1,500. When factoring in additional expenses such as property taxes, insurance, and maintenance, the total monthly cost can reach about $2,000. This means that landlords can achieve a positive cash flow by renting at the FMR, but they would likely leave money on the table given the high demand and tight market conditions. The price-to-FMR ratio of 11.1x indicates that the median home value is much higher than the FMR for a two-bedroom unit. This suggests that the housing market is primarily driven by owner-occupied homes rather than rentals. For investors focusing on Section 8 vouchers, this ratio highlights the challenge of finding properties that are both affordable and suitable for voucher holders. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom or studio apartments. These units typically have lower FMRs and may be more affordable for voucher holders. For example, the FMR for a one-bedroom unit is $2020, which is still above the typical mortgage payment for a two-bedroom home. 2. **Consider Vacant Lots for Development**: With the occupancy rate being so high, developing new rental properties on vacant lots could be a viable strategy. Investors could build smaller units or townhouses that are more likely to fit within the FMR guidelines. This approach would require an understanding of local zoning laws and development costs, but it could provide a steady stream of rental income aligned with Section 8 requirements. #### Bottom Line For investors focused on Section 8 vouchers, ZIP code 85379 presents a challenging environment. The high median income and tight rental market make it difficult to find properties that are both affordable and attractive to voucher holders. The recommendation for these investors would be to **skip** this ZIP code unless they can identify specific opportunities to develop or acquire smaller units that align with the FMR guidelines. The high occupancy rate and limited renter population suggest that there is less flexibility in the rental market, making it harder to secure long-term tenants through Section 8 programs.

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.