Section 8 Fair Market Rent (FMR) for ZIP 85382 - 2027

Investment Score for ZIP 85382

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	$1,580
1 Bedroom	$1,700
2 Bedrooms	$1,970
3 Bedrooms	$2,600
4 Bedrooms	$2,880
5 Bedrooms	$3,341
6 Bedrooms	$3,742
7 Bedrooms	$4,041
8 Bedrooms	$4,243

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	$1,970	$382,963	0.51%	F
3BR	$2,600	$432,426	0.6%	D
4BR	$2,880	$509,763	0.56%	F
5BR	$3,341	$636,562	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85382 (Peoria, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Peoria, AZ (ZIP 85382), as of 2026, is set at $2130 for a two-bedroom unit. This figure represents 27.9% of the median household income in the area, which stands at $91,525. However, the actual rental market in Peoria is significantly higher. The Zillow median price for a two-bedroom home is $390,937, indicating that the price-to-FMR ratio is approximately 15.3x. This means that landlords would need to charge around $32,589 annually ($2716 monthly) to recoup their investment based on the median home value. Given that the FMR is only $2130 for a two-bedroom unit, it is clear that many voucher holders will face significant constraints in finding suitable housing. The disparity between the FMR and actual rent prices suggests that voucher holders may struggle to find units that fall within the allowable rent range. This could lead to a situation where voucher holders are forced to look outside of Peoria for more affordable options, potentially impacting the occupancy rate and overall demand for rental properties in the area. #### Affordability & Renter Profile In Peoria, AZ, 30.3% of the population are renters, with a total population of 43,729. Given the high price-to-FMR ratio, the rental market appears to be quite tight, especially for those relying on Section 8 vouchers. The median household income is relatively high at $91,525, suggesting that the typical renter in Peoria has a decent financial standing. However, the 30.3% renter population indicates that there is still a significant segment of the community that relies on rental housing. With the occupancy rate at 90.4%, the market is showing strong demand for rental units. However, the affordability issue for voucher holders could create pockets of underutilized units, particularly if landlords are unwilling to accept the lower rent rates mandated by the FMR. This tight market condition, combined with the high cost of living, implies that Peoria is likely to attract a mix of middle-income earners and families who can afford higher rents but may still benefit from the stability of rental agreements. #### Investor Angle From an investor perspective, the ZIP code 85382 presents both opportunities and challenges. The FMR for a two-bedroom unit is $2130, while the median home value is $390,937. To determine if this ZIP code is cash-flow positive at FMR, we must consider the potential rental income versus the cost of ownership. If a landlord charges the FMR, they would receive $2130 per month, or $25,560 annually. However, the median home value suggests that the annual mortgage payment alone would be much higher. Assuming a 30-year fixed-rate mortgage at a 4% interest rate, the monthly payment for a $390,937 home would be approximately $1875. Adding property taxes, insurance, maintenance, and other costs, the total monthly expenses could easily exceed $2130. Therefore, the market in Peoria is unlikely to be cash-flow positive for investors at the FMR levels, making it challenging to generate profit solely through rental income. The investment grade for this ZIP code would be considered low due to the high cost of acquiring property relative to the rental income that can be generated under the FMR guidelines. Investors would need to consider alternative strategies, such as focusing on smaller units (like one-bedroom apartments) or seeking properties with below-market values to achieve positive cash flow. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Since the FMR for a one-bedroom unit is $1830, investors might consider purchasing one-bedroom homes or apartments. This could provide better cash flow opportunities compared to larger units, given the high price-to-FMR ratio. For instance, a one-bedroom unit could generate $21,960 annually, which might be closer to covering the mortgage and other expenses. 2. **Seek Below-Market Properties**: Investors should look for properties that are priced below the median home value of $390,937. A property priced at $300,000, for example, would have a monthly mortgage payment of about $1440 at a 4% interest rate. Combined with other expenses, this could bring the total monthly costs closer to the FMR for a two-bedroom unit, thereby improving the chances of achieving positive cash flow. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP 85382 (Peoria, AZ) is to **Skip** this market. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow when adhering strictly to FMR guidelines. While there is a significant renter population, the financial constraints imposed by the FMR and the high cost of property acquisition suggest that the returns may not justify the investment risk. Investors looking to enter the Peoria market should consider alternative strategies or focus on areas with more favorable price-to-FMR ratios.

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.