In accordance with embodiments, there are provided mechanisms and methods for facilitating tiered service model-based fair allocation of resources for application servers in multi-tenant environments. In one embodiment and by way of example, a method includes collecting, by and incorporating into the database system, data relating to job types associated with one or more tenants of a plurality of tenants within a multi-tenant database system, computing, based on the data, an actual resource use and an expected resource allocation associated with each job type, and assigning classifications to the job types based on their corresponding actual resource use and the expected resource allocation. The method may further include routing the job types between tiers based on the assigned classifications, where the routing includes at least one of promoting, demoting, and maintaining one or more tiers for the job types.