Location: Prescott Valley-Prescott, AZ | Metro: Prescott Valley-Prescott, 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 | $1,040 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $2,050 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,050 | $378,156 | 0.54% | F |
U.S. Census Bureau data (2024)
To classify ZIP code 85332, we must consider both the yield potential and the stability factors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1480. This figure represents the average rent that a landlord can expect to receive from a Section 8 tenant in this area. However, there is no specific market rent data available for comparison, which means we rely solely on the FMR for yield assessment.
The median home value in ZIP 85332 is $354,326, indicating a relatively stable housing market. Home values tend to reflect broader economic conditions and can be an indicator of property appreciation over time, which benefits long-term investments.
Moving onto stability, the percentage of renters is 5.4%, which is quite low. A low percentage of renters typically suggests a less volatile rental market but also implies fewer potential tenants. The lack of data on days-on-market (DOM) makes it challenging to assess how quickly properties might be rented out, which is crucial for cash flow consistency.
The median household income in ZIP 85332 is $56,165. This figure is important because it helps gauge the financial health of potential tenants and their ability to pay rent consistently. While the income level is moderate, it aligns well with the FMR, suggesting that tenants can reasonably afford the rent.
Based on these figures, ZIP 85332 leans towards being a steady-cashflow zone. The yield, driven by the FMR of $1480, is predictable and reliable. Although the home value of $354,326 is substantial, it indicates a stable market where property values are unlikely to plummet. The low percentage of renters, however, does suggest some limitations on the number of potential tenants, but the alignment between median income and FMR supports consistent rental payments. Without day-on-market data, we cannot fully assess the speed of tenant acquisition, but the overall picture points to a conservative investment strategy rather than a high-risk, high-reward scenario typical of flip-style markets.
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.