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 | $1,810 |
| 1 Bedroom | $1,950 |
| 2 Bedrooms | $2,260 |
| 3 Bedrooms | $2,980 |
| 4 Bedrooms | $3,310 |
| 5 Bedrooms | $3,840 |
| 6 Bedrooms | $4,301 |
| 7 Bedrooms | $4,645 |
| 8 Bedrooms | $4,877 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,260 | $437,922 | 0.52% | F |
| 3BR | $2,980 | $398,627 | 0.75% | D |
| 4BR | $3,310 | $450,854 | 0.73% | D |
| 5BR | $3,840 | $521,786 | 0.74% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 85388, Surprise, Arizona, within Maricopa County, are governed by specific financial metrics. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $2,530. This figure represents the maximum amount that a Section 8 voucher can cover for rent in this specific ZIP code. It's important to note that the SAFMR is tailored to the local rental market conditions, making it reflective of the actual costs landlords might face.
In contrast, the local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $2,205 for a similar two-bedroom unit. This indicates that the SAFMR is higher than the average market rent, which could be beneficial for landlords who participate in the program.
A Section 8 voucher typically covers the difference between the tenant's portion of the rent and the total rent. The tenant's portion is generally 30% of their income, but there are also utility allowances that vary based on the size of the unit and the location. For a two-bedroom unit in ZIP 85388, the utility allowance is set at $476 per month for FY 2024.
To walk a landlord through the actual payment process, consider a scenario where a tenant's portion of the rent is $600. With the SAFMR at $2,530 and the utility allowance at $476, the total reimbursement a landlord would receive from the voucher program would be $3,006 ($2,530 + $476).
This means if you charge the market rate of $2,205, the voucher would cover the entire rent plus provide an additional $801 towards utilities, resulting in a surplus of $801 per month over the market rent. However, if you charge the full SAFMR rate of $2,530, the voucher would cover the entire rent, and the landlord would still receive the utility allowance of $476, but there would be no surplus over the market rate. Instead, the landlord would receive exactly the SAFMR amount for rent and the utility allowance separately.
The typical reimbursement gap or surplus for a two-bedroom unit in ZIP 85388, therefore, depends on the rent charged. If the rent is set at the market rate of $2,205, the landlord will see a surplus of $801 per month when factoring in the utility allowance. If the rent is set at the SAFMR rate of $2,530, the landlord will receive the exact amount of the SAFMR plus the utility allowance, aligning closely with the economic parameters set for this ZIP code.
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.