Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,960 |
| 1 Bedroom | $2,110 |
| 2 Bedrooms | $2,450 |
| 3 Bedrooms | $3,230 |
| 4 Bedrooms | $3,590 |
| 5 Bedrooms | $4,164 |
| 6 Bedrooms | $4,664 |
| 7 Bedrooms | $5,037 |
| 8 Bedrooms | $5,289 |
U.S. Census Bureau data (2024)
Peoria, specifically the 85383 ZIP code in the Northwest Valley, is characterized by a master-planned, suburban environment featuring larger lots, newer construction, and ample outdoor recreation. This area is a major suburb of Phoenix known for high-quality amenities, including access to the Peoria Sports Complex, which serves as a key local institution and spring training facility, alongside a reputation for family-friendly living and safe neighborhoods.
The financial metrics reveal a challenging landscape for voucher utilization. The HUD FY2026 Fair Market Rent for a 2-bedroom unit is set at $2,670, yet the current market rent (Zillow ZORI) sits significantly lower at $2,311. This creates a negative spread of $359, meaning voucher holders cannot utilize their full benefit in this specific market. Median home values are substantial at $641,783, with 2-bedroom properties selling for a median of $586,337 and taking a median of 76 days to sell, indicating a somewhat slower turnover for high-priced assets.
With a renter share of only 9.3% and a median household income of $145,546, the population is predominantly composed of high-income owner-occupants rather than renters. The low density of rental units restricts the immediate pool of Section 8 applicants. However, the area’s strong demand is bolstered by top-rated school districts and well-maintained suburban infrastructure, which generally supports tenant retention and property stability, though the local demographic skews away from subsidized housing needs.
The Section 8 verdict for 85383 is stability and appreciation over cash flow. The substantial negative gap between the $2,670 FMR and $2,311 market rent makes standard cash-flow strategies difficult for voucher holders. Instead, investors should target the high-income equity play, relying on the area's strong household incomes and quality of life to drive long-term value preservation rather than immediate rental yield from the housing choice voucher program.
Data Sources: FMR data from HUD (2027). 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.