Location: Navajo County, AZ | Metro: Apache County, AZ
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 | $950 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,350 | $326,709 | 0.41% | F |
| 3BR | $1,670 | $489,796 | 0.34% | F |
| 4BR | $1,780 | $685,483 | 0.26% | F |
| 5BR | $2,065 | $916,988 | 0.23% | F |
U.S. Census Bureau data (2024)
The ZIP code 85901, located in Show Low, Arizona, presents a unique challenge for renters when it comes to affording housing. The median income in this area stands at $59,779. Considering the market rate for rent, which is reported to be $1,071 according to Census ACS data, it becomes evident that the average household would struggle to meet these costs comfortably.
To put this into perspective, let's examine how the market rate compares to the federal voucher payment standard. For fiscal year 2026, the Fair Market Rent (FMR) for the metro area is set at $1,420. This figure is significantly higher than the actual market rate, indicating that the federal standard is out of sync with local realities. It means that while renters might find the market rate challenging, it is still more affordable than the amount the government considers fair for rental assistance.
With approximately 25.4% of the population being renters and a total population of 19,533, there is a notable segment of the community facing financial strain due to housing costs. This affordability gap creates stiff competition among landlords, as they vie for tenants who can afford the market rate without relying on voucher programs. However, the discrepancy between the market rate and the FMR suggests that landlords could potentially attract more stable tenants by accepting vouchers.
The takeaway for landlords considering their strategy regarding voucher versus cash-pay tenants is clear: while the voucher payment standard exceeds the local market rate, accepting vouchers can be a viable approach to securing long-term, reliable tenants. Landlords should weigh the benefits of voucher stability against the lower-than-standard market rates they might encounter. Additionally, focusing on improving property value and efficiency can help attract both voucher and cash-paying renters, ensuring a competitive edge in the local market.
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.