Location: Apache 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 | $790 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,560 | $312,791 | 0.5% | F |
| 4BR | $1,890 | $388,045 | 0.49% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 85925, located in the Apache County, AZ metro area, reveals a significant opportunity due to the disparity between the HUD Fair Market Rent (FMR) and the actual market rent. The HUD FMR for the area is set at $1,170 per month for the fiscal year 2026, which is considerably higher than the reported market rent of $494 based on Census ACS data. This means that voucher tenants can easily cashflow at the FMR, allowing landlords to charge rents well above the market rate without the financial burden typically associated with lower-income housing.
To further understand the investment potential, consider the median home value in ZIP 85925, which stands at $313,574. Using the HUD FMR, we can calculate a rent-to-price ratio of approximately 4.5%, indicating a relatively low cost to own versus renting. However, using the actual market rent, the rent-to-price ratio drops significantly to around 1.9%. This suggests that owning a property in this area is substantially more economical than renting it out at market rates, but much less so when considering the higher voucher-based rents.
In terms of the rental market's dynamics, the N/A-day median DOM (Days On Market) and the 0.1% price-cut share indicate a stable market where properties are selling quickly and without substantial discounts. These factors suggest that while the area may not be experiencing rapid appreciation, it offers a high degree of stability and predictability, which is particularly beneficial for small-portfolio investors seeking reliable returns.
The strongest investor angle in ZIP 85925 is undoubtedly cashflow. With voucher tenants paying nearly double the market rent, landlords can expect strong positive cashflow, making this an attractive location for Section 8 investments focused on generating steady income.
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.