Location: Apache County, AZ | Metro: Apache County, AZ
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,090 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,200 |
| 5 Bedrooms | $2,552 |
| 6 Bedrooms | $2,858 |
| 7 Bedrooms | $3,087 |
| 8 Bedrooms | $3,241 |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP code 85924 might raise several concerns regarding the viability of investing in rental properties here, especially when considering the Federal Market Rent (FMR) and the overall rental market dynamics. Let's address these concerns directly.
Objection 1: Will FMR of $1,530 (metro FY 2026) cover the mortgage on a $290,635 home?
The FMR of $1,530 can indeed be a significant factor in determining whether it covers the mortgage payment on a $290,635 home. Assuming a typical mortgage rate of around 4%, the monthly principal and interest payment on a 30-year fixed-rate mortgage for a $290,635 home would be approximately $1,400. This means that the FMR does cover the mortgage payment, leaving a buffer for maintenance and other costs. However, it's crucial to note that this calculation assumes no down payment and does not account for property taxes, insurance, or potential vacancy rates.
Objection 2: Is there enough renter demand at 8.7%?
The 8.7% rental rate in ZIP 85924 indicates that nearly 9 out of every 100 homes are rented, which is a modest figure compared to some metropolitan areas. While this percentage suggests a lower level of demand, it also implies less competition among landlords. The key metric to consider here is the occupancy rate. If the occupancy rate is high, it signals strong demand relative to supply. Unfortunately, the data provided does not specify the occupancy rate, so we cannot conclusively determine if there is sufficient demand based solely on the rental rate percentage.
Objection 3: Will vouchers keep pace with N/A market rents?
The question of whether housing vouchers will keep up with market rents is critical, especially in areas where voucher usage is prevalent. However, the data provided does not include specific figures for voucher amounts or trends in ZIP 85924. Without this information, it's impossible to definitively state whether vouchers will match future market rents. It's important to monitor local HUD announcements and trends in voucher allocation to make an informed decision.
In conclusion, while the FMR of $1,530 does cover the mortgage payment on a $290,635 home, indicating financial feasibility, the moderate rental rate of 8.7% leaves uncertainty regarding the strength of renter demand. Lastly, the lack of data on voucher amounts makes it challenging to predict their adequacy in covering market rents. Landlords and investors should carefully evaluate these factors and seek additional local market data before making investment decisions in ZIP 85924.
Data Sources: FMR data from HUD (2027). 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.