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 | $1,670 |
| 1 Bedroom | $1,810 |
| 2 Bedrooms | $2,100 |
| 3 Bedrooms | $2,800 |
| 4 Bedrooms | $3,110 |
| 5 Bedrooms | $3,608 |
| 6 Bedrooms | $4,041 |
| 7 Bedrooms | $4,364 |
| 8 Bedrooms | $4,582 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,100 | $549,208 | 0.38% | F |
| 3BR | $2,800 | $430,270 | 0.65% | D |
U.S. Census Bureau data (2024)
ZIP code 85623, located in Oracle, AZ, falls within the Phoenix-Mesa-Chandler, AZ MSA. To analyze its position relative to other ZIP codes in the Phoenix area, we must consider several key metrics including Fair Market Rent (FMR), market rent, home values, and the percentage of renters.
The Fair Market Rent (FMR) for ZIP 85623 in fiscal year 2024 is set at $1570. This figure is crucial for landlords participating in the Section 8 program, as it dictates the maximum rental assistance payment standard. While the specific market rent for 85623 is not available, we can infer that if the market rent is higher than the FMR, landlords may find it challenging to cover their costs solely through the Section 8 program without additional subsidies.
The median home value in ZIP 85623 is $533,292. This places it above the average home value in the broader Phoenix-Mesa-Chandler, AZ MSA, which typically ranges lower. Higher home values generally indicate a more affluent neighborhood, suggesting that 85623 could be considered a premium sub-market within the larger metropolitan area.
With a renter share of 10.6%, Oracle, AZ has a relatively low proportion of residents who rent compared to the national average. This lower renter share might suggest that the area is less attractive for those seeking rental properties, potentially indicating a smaller pool of potential Section 8 tenants. However, this does not necessarily mean that 85623 is unsuitable for Section 8 investments; it simply highlights a trend toward homeownership over renting.
Given the data points, ZIP 85623 appears to be a premium sub-market within the Phoenix-Mesa-Chandler, AZ MSA. The high median home value suggests an upscale environment, while the FMR provides a benchmark for rental costs that landlords should be aware of when considering participation in the Section 8 program. The lower renter share indicates a preference for owning homes over renting, which may influence the demand for rental properties in this area.
While there is no direct indication of a value pocket or a mid-tier neighborhood based on the provided figures, the combination of high home values and a relatively low renter share implies that 85623 is more suited for investors looking to target a premium segment of the housing market rather than those seeking areas with a higher concentration of Section 8 eligible tenants.
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.