Location: Yuma, AZ | Metro: Yuma, 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 | $1,130 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $2,050 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $212,409 | 0.7% | D |
| 3BR | $2,050 | $287,722 | 0.71% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 85356, Wellton, AZ, on the axes of yield and stability reveals a unique market scenario that leans towards being a high-yield but low-stability environment. This analysis is based on the Fair Market Rent (FMR) of $1220 for fiscal year 2024, which contrasts sharply with the median home value of $260,393. The FMR indicates the rental income potential, suggesting that rental properties can be priced competitively without significant investment in property upgrades or management.
The median household income in the area is $71,285, which is relatively low compared to the national average, thereby affecting the ability of residents to afford higher rents or purchase homes outright. With only 9.6% of the population being renters, the market is primarily driven by homeownership, indicating a limited demand for rental properties. However, the low percentage of renters also suggests that rental properties can command premium rates if managed effectively, given the scarcity of rental options.
The lack of data on days on market (DOM) further complicates the stability assessment. Typically, a high DOM would indicate difficulty in renting out properties, suggesting instability. However, the absence of this figure means we cannot fully gauge the speed at which rental units turn over, which is crucial for cash flow planning. Given the other factors, it is reasonable to assume that the market turnover rate is slow, contributing to the low stability score.
In summary, ZIP 85356 presents itself as a high-yield market due to the disparity between the FMR and the median home value, allowing for potentially lucrative rental yields. However, the market's stability is compromised by the low renter population and presumed slow turnover rates, making it a less reliable source for consistent cash flow. For landlords and small-portfolio investors looking to maximize returns through short-term investments or flips, this could be an attractive option. Conversely, those seeking steady, long-term cash flows should approach with caution and consider diversifying their portfolio.
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.