Location: Navajo County, AZ | Metro: Navajo 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 | $850 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $322,062 | 0.37% | F |
| 3BR | $1,460 | $473,498 | 0.31% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP 85933 (Overgaard, AZ) for Section 8 investments, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,250 cover the debt service on a property priced at $378,297?
If the monthly debt service on a $378,297 property is less than $1,250, then the answer is yes. This would mean that the FMR is sufficient to cover the mortgage payments and other fixed costs associated with owning the property.
If the monthly debt service exceeds $1,250, the answer is no. In this case, the FMR does not provide enough income to meet the financial obligations of the property.
2) How does the market rent of $741 compare to the FMR?
If the market rent is below the FMR, then the answer is yes. This indicates that there is potential for higher rents under Section 8 compared to the local market rate.
If the market rent is equal to or above the FMR, the answer is no. It means that landlords cannot expect to charge more than the market rate even with Section 8 tenants, reducing the attractiveness of such an investment.
3) Is the combination of 11.2% renters and the days on market (DOM) sufficient to ensure demand?
If the percentage of renters is high enough and the DOM is low, indicating quick turnover of rental properties, the answer is yes. This suggests a steady demand for rental housing in Overgaard, AZ.
If the percentage of renters is too low or the DOM is not provided, making it difficult to assess the speed at which properties are rented out, the answer is it depends. Landlords will need to consider other factors such as the local economy, job growth, and population trends to gauge the potential demand for Section 8 properties.
In summary, the viability of purchasing a property in ZIP 85933 for Section 8 purposes hinges on whether the FMR covers the debt service, the comparison between market rent and FMR, and the sufficiency of rental demand. The specific figures provided—FMR of $1,250, market rent of $741, and 11.2% of renters—must be analyzed against these criteria to make an informed decision.
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.