Location: Navajo 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 | $1,230 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,170 | $342,612 | 0.63% | D |
| 4BR | $2,300 | $418,734 | 0.55% | F |
U.S. Census Bureau data (2024)
The market in ZIP code 85937 presents a dynamic environment that balances between supply and demand, leaning slightly towards a scenario where demand may be catching up. With a Fair Market Rent (FMR) set at $1,700 for fiscal year 2026, there's a notable gap between the FMR and the actual market rent of $1,176, based on Census American Community Survey (ACS) data. This suggests that rents in 85937 are currently below what the government considers fair, indicating potential for upward pressure on rental prices as the market adjusts.
A price-cut share of 0.2% implies that very few properties are being discounted, which is typically a sign of a stable or slightly tight market. Landlords and investors should note that when demand exceeds supply, fewer discounts are offered because tenants are willing to pay closer to asking prices. The median home value of $345,681 reflects the overall stability and value of the housing stock in this area, but it doesn't provide a complete picture of the rental versus ownership dynamics.
The 16.4% renter share is a critical metric for understanding long-term housing pressure. In areas with a higher percentage of renters, there is often greater pressure on the rental market, as these individuals represent a significant portion of the population that will continue to seek rental accommodation over the long term. This can create sustained demand for rental properties, making 85937 an attractive market for those looking to invest in rental properties. However, it also means that any decrease in available rental units could lead to increased competition among renters, potentially driving up rental prices further.
In summary, the data points towards a market where demand is likely to grow, especially in the rental sector. The low price-cut share and the gap between FMR and market rent suggest that landlords and investors in 85937 are in a position to capitalize on the current trends without having to significantly reduce their prices. The relatively high renter share indicates a steady and possibly increasing demand for rentals, which could translate into strong performance for Section 8-related investments in this ZIP code.
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.