Section 8 Fair Market Rent (FMR) for ZIP 85396 - 2027

Investment Score for ZIP 85396

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	$1,800
1 Bedroom	$1,940
2 Bedrooms	$2,250
3 Bedrooms	$2,980
4 Bedrooms	$3,330
5 Bedrooms	$3,863
6 Bedrooms	$4,327
7 Bedrooms	$4,673
8 Bedrooms	$4,907

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	$2,250	$434,138	0.52%	F
3BR	$2,980	$440,490	0.68%	D
4BR	$3,330	$470,271	0.71%	D
5BR	$3,863	$557,308	0.69%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85396 (Buckeye, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Buckeye, AZ, as per the 2026 data, is set at $2460 for a two-bedroom unit. This amount represents 25.9% of the median household income in the area, which stands at $114,056. For voucher holders, the FMR serves as a cap on the rent they can afford. However, the actual rental market in Buckeye is significantly higher than the FMR. The Zillow median price for a two-bedroom home is $438,296, indicating that the price-to-FMR ratio is 14.8x. This means that the average market rent for a two-bedroom unit is likely much higher than the FMR, creating a significant constraint for voucher holders who must find properties within their budget. #### Affordability & Renter Profile Buckeye has a relatively low renter population percentage of 7.3%, suggesting that it is primarily a homeowner community. The occupancy rate of 90.8% indicates a fairly tight rental market, with most available units being occupied. Given the high median household income and the low percentage of renters, those who do rent in Buckeye are likely to be individuals or families who have chosen to rent rather than purchase due to lifestyle preferences or financial considerations. The FMR for a two-bedroom unit is only a fraction of the median income, making it challenging for voucher holders to find affordable housing. #### Investor Angle From an investor perspective, the ZIP code 85396 presents a mixed scenario. The FMR for a two-bedroom unit is $2460, but the actual market rent is likely much higher given the Zillow median price and the price-to-FMR ratio. If an investor is looking to cater specifically to Section 8 voucher holders, the property would need to be priced at or below the FMR to be considered affordable. This could potentially limit cash flow if the investor is expecting market rates. The investment grade in this area would depend heavily on the ability to attract and retain tenants who qualify for Section 8 vouchers, considering the tight rental market and the high cost of living. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on developing or acquiring properties that are priced at or near the FMR levels. For instance, a two-bedroom unit priced at $2460 would be attractive to voucher holders and could ensure steady occupancy. However, this comes with the caveat of lower potential returns compared to market-rate rentals. 2. **Consider Multi-Family Developments**: Given the tight rental market and the high price-to-FMR ratio, multi-family developments might offer better opportunities for cash flow. A development with multiple units, including smaller one-bedroom units priced at $2120, could help balance the overall portfolio and provide more flexibility in attracting different types of tenants. 3. **Explore Government Incentives**: Due to the high cost of living and the constraints faced by voucher holders, exploring government incentives or subsidies for affordable housing projects could be beneficial. These programs might offset some of the financial risks associated with pricing properties at FMR levels. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 85396 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it difficult to find properties that are both affordable and profitable. While there is a demand for affordable housing, the limited number of renters and the high cost of living suggest that the potential for successful Section 8 investments is low. Investors might consider other ZIP codes with a higher renter population and a more favorable price-to-FMR ratio to maximize their chances of success.

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.