Section 8 Fair Market Rent (FMR) for ZIP 85935 - 2027

Location: Navajo County, AZ | Metro: Navajo County, AZ

Investment Score for ZIP 85935

Monthly Rent (2BR)

$1,420

Median Price (2BR)

$402,805

1% Rule

0.35%

Annual Yield

4.23%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,000
1 Bedroom	$1,090
2 Bedrooms	$1,420
3 Bedrooms	$1,760
4 Bedrooms	$1,870
5 Bedrooms	$2,169
6 Bedrooms	$2,429
7 Bedrooms	$2,623
8 Bedrooms	$2,754

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,420	$402,805	0.35%	F
3BR	$1,760	$524,041	0.34%	F
4BR	$1,870	$767,118	0.24%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

4,534

Median Household Income

$73,333

Housing Units

5,379

Renter Percentage

13.1%

Occupancy Rate

40.2%

Renter Occupied

283

Pinetop, Arizona, located in the picturesque White Mountains, offers a serene environment for both residents and visitors alike. Nestled among pine forests and surrounded by natural beauty, it has become an attractive destination for those seeking a tranquil lifestyle. However, the real estate market in ZIP code 85935 presents a unique set of challenges and opportunities for landlords and small-portfolio investors.

The Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is $1,330.
The average market rent for properties in Pinetop, based on Census ACS data, stands at $831.
The median home value in the area is $540,048, indicating a robust housing market.
Renters make up 13.1% of the population, suggesting that homeownership is prevalent but there's still a niche market for rental properties.
The median household income in Pinetop is $73,333, providing insight into the financial stability of potential tenants.

Given these data points, investors can expect a competitive rental market with moderate returns, especially when considering the discrepancy between the Fair Market Rent and the actual market rent. The high median home value indicates a strong local economy, which supports property values but also means that rental prices must remain reasonable to attract tenants. The relatively low percentage of renters suggests that while the market might be smaller, it could offer less competition for landlords who wish to cater to this niche. With a stable median income, tenants are likely to have the financial capability to meet their rental obligations, reducing the risk of default. Overall, the real estate landscape in Pinetop provides a balanced opportunity for investment, requiring careful consideration of property types and pricing strategies to maximize profitability.

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.