Location: Navajo County, AZ | Metro: Navajo County, AZ
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,040 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 85939 in the Navajo County, AZ metro area reveals several key points regarding its viability for landlords and small-portfolio investors. Firstly, the rent math does not work in favor of landlords. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,600, whereas the current market rent, according to Census ACS data, is only $727. This significant disparity means that landlords would have to either accept rents far below the FMR or risk having units remain vacant.
Secondly, the acquisition cost of homes is relatively high compared to the potential rental income. With a median home value of $377,010, purchasing properties in this area is expensive. The lack of data on days on market (DOM) and the low percentage of homes that require price cuts (0.2%) suggest that homes are selling quickly and without much negotiation, which could be a positive sign for those looking to sell their properties but not for new acquisitions.
Lastly, the tenant demand is limited. The population of 3,849 is small, and only 15.9% of residents are renters. This indicates a smaller pool of potential tenants and suggests that competition among landlords for available renters might be stiff.
In summary, ZIP code 85939 presents challenges for landlords and small-portfolio investors due to the mismatch between FMR and actual market rents, high acquisition costs, and limited tenant demand. The economics do not support the current rental market, making it an unfavorable location for investment based on these metrics.
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.