Section 8 Fair Market Rent (FMR) for ZIP 85381 - 2027

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

Investment Score for ZIP 85381

Monthly Rent (2BR)

$1,760

Median Price (2BR)

$263,325

1% Rule

0.67%

Annual Yield

8.02%

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	$1,410
1 Bedroom	$1,520
2 Bedrooms	$1,760
3 Bedrooms	$2,320
4 Bedrooms	$2,580
5 Bedrooms	$2,993
6 Bedrooms	$3,352
7 Bedrooms	$3,620
8 Bedrooms	$3,801

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	$1,760	$263,325	0.67%	D
3BR	$2,320	$417,547	0.56%	F
4BR	$2,580	$503,820	0.51%	F
5BR	$2,993	$640,330	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

27,650

Median Household Income

$96,746

Housing Units

11,228

Renter Percentage

33.6%

Occupancy Rate

94.0%

Renter Occupied

3,542

The area surrounding ZIP code 85381 in Peoria, Arizona, presents a robust market for real estate investors interested in both rental properties and homeownership opportunities. This region benefits from a mix of affordable housing and a growing population, making it an attractive location for those looking to invest in the local economy.

The Fair Market Rent (FMR) for ZIP 85381 in fiscal year 2024 is set at $2000, indicating the average monthly rental cost that landlords should aim to meet or slightly exceed to remain competitive.
The actual market rent, as measured by the Zillow Observed Rent Index (ZORI), stands at $1,467. This suggests there's potential for rental price increases to align with the FMR.
The median home value in the area is $455,869, reflecting the overall affordability and value of residential properties in Peoria.
Renters make up 33.6% of the population, showing a significant demand for rental units in the area.
The days on market (DOM) for properties is 24 days, which is relatively quick, indicating a healthy sales pace and low vacancy risk.
The median household income is $96,746, providing a stable economic base for both renters and homeowners.

Investors in Peoria, AZ, can leverage these data points to inform their strategies. The gap between the ZORI and the FMR indicates a possible opportunity to increase rental prices, while the DOM figure suggests a brisk market for property sales. With a substantial portion of residents renting and a median income that supports rental payments, landlords and small-portfolio investors can expect solid returns on investment in this area.

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.