Location: Flagstaff, AZ | Metro: Flagstaff, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,440 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
U.S. Census Bureau data (2024)
To classify ZIP code 85931, we must analyze its yield and stability based on the provided data points. The Fair Market Rent (FMR) for 2024 is set at $1860. This figure represents the average rental cost for a property in this area, which is significantly lower than the median home value of $551,500. In terms of yield, this suggests that the rental income does not provide a high return relative to the investment required to purchase a home in this ZIP code.
The income level in 85931 is reported as $87,852 per year, indicating a moderate economic status for the residents. However, only 10.6% of the population are renters, which implies a predominantly owner-occupied market. This low percentage of renters can be a sign of instability in the rental market, as it means there might be fewer potential tenants willing to rent at the FMR rate.
The days on market (DOM) is not provided, but it's crucial for understanding the stability of the rental market. Typically, a higher DOM indicates slower sales or rentals, which could suggest challenges in finding tenants promptly. Given the lack of this information, we must rely on other indicators such as the rental percentage and income levels.
In conclusion, ZIP 85931 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The primary driver for this classification is the low percentage of renters, which reduces the volatility and risk associated with the rental market. Despite the relatively low FMR compared to the home value, the moderate income levels suggest that tenants who do rent will likely have the financial capability to meet their obligations. However, the limited rental pool makes it less suitable for quick flips or short-term investments aimed at maximizing immediate returns. Landlords and small-portfolio investors should expect a stable, if modest, cash flow from properties in this ZIP code.
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.