Location: Prescott Valley-Prescott, 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 | $1,170 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $2,040 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,520 | $449,128 | 0.34% | F |
| 3BR | $2,040 | $514,747 | 0.4% | F |
| 4BR | $2,250 | $641,824 | 0.35% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP code 85390 (Wickenburg, AZ) for Section 8 investment, follow these steps:
The Fair Market Rent (FMR) of $1570 is sufficient to cover the debt service on a property valued at $513,558. This means that the rental income from a Section 8 tenant will meet the mortgage and other financial obligations of the property.
The Zillow Observed Rental Index (ZORI) indicates that the average market rent is $1,769, which is higher than the FMR of $1570. This suggests that there is potential to earn more from market-rate tenants, but it also implies that Section 8 tenants might find it difficult to afford market rates, limiting their ability to pay the higher rents.
The percentage of renters in Wickenburg, AZ is 17.9%, and while the days on market (DOM) is not available, the rental population alone suggests a moderate level of demand. However, the lack of DOM data makes it challenging to assess how quickly properties can be rented out.
Yes: If FMR covers debt service, market rent is above FMR, and there is a reasonable rental population, the investment could be viable. The higher market rent supports the idea that there's potential for non-Section 8 rentals, but the lower FMR for Section 8 must be considered.
No: If FMR does not cover debt service, or the rental population is insufficient, then buying for Section 8 in Wickenburg, AZ is not advisable. A property where rental income cannot meet financial obligations is risky, and low demand increases vacancy risks.
It Depends: If the market rent is close to or below FMR, or if the rental population is marginal without additional data on DOM, the decision hinges on further analysis. Landlords must weigh the likelihood of finding tenants against the financial stability provided by Section 8.
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.