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 | $1,560 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,570 |
| 4 Bedrooms | $2,850 |
| 5 Bedrooms | $3,306 |
| 6 Bedrooms | $3,703 |
| 7 Bedrooms | $3,999 |
| 8 Bedrooms | $4,199 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,950 | $340,239 | 0.57% | F |
| 3BR | $2,570 | $384,064 | 0.67% | D |
| 4BR | $2,850 | $434,570 | 0.66% | D |
| 5BR | $3,306 | $515,893 | 0.64% | D |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP 85392 in Avondale, AZ, must be carefully considered. Tenant turnover is a significant issue, with the market rent at $1,694 being notably lower than the Fair Market Rent (FMR) of $2,080 for FY 2024. This discrepancy suggests that tenants might find it challenging to afford higher rents outside of the Section 8 program, leading to frequent moves and high turnover rates.
Vacancy exposure is another concern. With an average Days on Market (DOM) of 35 days, landlords face a period where their property remains unoccupied, resulting in lost rental income. The typical home value in the area is around $411,134, which is relatively high compared to the median household income of $87,702. This economic disparity can lead to deferred maintenance issues, as residents may struggle to cover the costs of necessary repairs and upkeep.
However, these risks are mitigated by the high renter share in the area, which stands at 38.6%. High renter density generally translates into a higher demand for housing vouchers, making it easier for landlords to find eligible tenants. The concentration of renters also indicates a robust rental market, which can help ensure consistent occupancy and stable cash flow.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 85392 is moderate.
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.