Section 8 Fair Market Rent (FMR) for ZIP 85395 - 2027

Investment Score for ZIP 85395

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	$1,640
1 Bedroom	$1,760
2 Bedrooms	$2,050
3 Bedrooms	$2,720
4 Bedrooms	$3,050
5 Bedrooms	$3,538
6 Bedrooms	$3,963
7 Bedrooms	$4,280
8 Bedrooms	$4,494

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,050	$486,400	0.42%	F
3BR	$2,720	$487,454	0.56%	F
4BR	$3,050	$569,689	0.54%	F
5BR	$3,538	$668,813	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85395 (Goodyear, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Goodyear, AZ (ZIP 85395) in 2026 is set at $2250 for a two-bedroom unit, which represents 25.5% of the median household income of $105,935. This suggests that the rent for a two-bedroom unit is relatively affordable for the average household in the area. However, it is important to consider how these FMRs compare to actual rents. According to Zillow, the median price for a two-bedroom home in this ZIP code is $494,597, which translates to a price-to-FMR ratio of 18.3x. This indicates that actual rents are significantly higher than the FMRs, creating a potential constraint for voucher holders. For instance, if a landlord charges $2250 per month, a voucher holder would only be able to cover this amount, leaving little room for landlords to charge more without risking vacancy. #### Affordability & Renter Profile With a renter population of 21.9%, Goodyear has a relatively small percentage of residents who rely on rental housing. The occupancy rate of 86.2% suggests that there is a moderate demand for rental units, but the market is not overly tight. Given the median household income of $105,935, renters in this area are likely to be middle-income families or individuals who can afford higher rents. The fact that 2BR units cost $2250 according to FMR, but the actual median price is $494,597, implies that the market is somewhat inflated compared to what the government considers fair. This could mean that some renters might find it challenging to secure affordable housing, especially those relying solely on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 85395 presents a mixed picture. While the FMRs provide a baseline for rental pricing, the actual market rents are much higher. A two-bedroom unit priced at $2250 per month would likely generate positive cash flow for an investor, given the high median home value and the likelihood that many units are rented out at rates above the FMR. However, the challenge lies in finding properties that can be rented at or below the FMR while still being profitable. The price-to-FMR ratio of 18.3x suggests that the market is quite expensive, which could impact the investment grade. Investors should carefully evaluate the potential for long-term appreciation and the stability of rental demand before making any investments. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors looking to cater to Section 8 voucher holders should focus on acquiring properties that can be rented at or slightly above the FMR. For example, a two-bedroom unit priced at $2250 per month would be attractive to voucher holders. This strategy requires identifying undervalued properties or negotiating lower purchase prices. 2. **Consider Multi-Family Units**: Given the higher FMRs for larger units (e.g., 3BR at $3020 and 4BR at $3380), multi-family units might offer better opportunities for cash flow. Investors could target properties with multiple units, where they can charge closer to the FMR for each unit, thereby maximizing their returns. 3. **Evaluate Long-Term Appreciation Potential**: Despite the high price-to-FMR ratio, the median home value of $494,597 suggests that the area has strong long-term appreciation potential. Investors should consider the possibility of holding onto properties for longer periods to benefit from capital gains, even if initial cash flow is modest. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 85395 is **Hold**. The market is not ideal for immediate cash flow due to the high price-to-FMR ratio, but the potential for long-term appreciation and the stable demand for rental units make it a viable option for investors willing to take a longer-term view. Careful selection of properties that can be rented at or near the FMR will be crucial for success in this market.

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.