Location: Flagstaff, AZ | Metro: Flagstaff, AZ MSA
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 | $1,630 |
| 1 Bedroom | $1,790 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,420 |
| 4 Bedrooms | $2,610 |
| 5 Bedrooms | $3,028 |
| 6 Bedrooms | $3,391 |
| 7 Bedrooms | $3,662 |
| 8 Bedrooms | $3,845 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,790 | $382,973 | 0.47% | F |
| 2BR | $1,950 | $459,914 | 0.42% | F |
| 3BR | $2,420 | $663,793 | 0.36% | F |
| 4BR | $2,610 | $842,497 | 0.31% | F |
| 5BR | $3,028 | $1,136,354 | 0.27% | F |
U.S. Census Bureau data (2024)
In Flagstaff, Arizona (ZIP 86001), the real estate landscape for both homeowners and landlords is currently defined by a median home value of $666,870. This figure, combined with the fact that only 0.2% of listings have reduced their asking prices, indicates a strong seller's market. The low percentage of price reductions suggests that homes are generally valued correctly and that there is little downward pressure on prices from competition.
The median days on market (DOM) stands at 38 days, which is relatively short. This quick turnover rate signals that properties are moving swiftly once listed, further supporting the notion of robust demand. Landlords and small-portfolio investors can leverage this data to maintain higher rental rates, as the underlying property values are stable and the market shows a willingness to absorb these prices.
On the rental side, the Fair Market Rent (FMR) for ZIP 86001 in fiscal year 2024 is set at $2,040, while the actual market rent (ZORI) is observed at $2,260. This discrepancy between the government-set FMR and the market rate highlights an opportunity for landlords to charge slightly above the subsidized rates without losing tenants. However, it also points to a potential risk if the market rate begins to align more closely with the FMR, leading to a reduction in rental income.
For long-term investors considering appreciation, the setup in Flagstaff is mixed. The stable median home value and the low rate of price reductions suggest that the market is unlikely to experience significant depreciation. However, the short DOM and the slight premium in market rents over FMR indicate a balanced market rather than one poised for rapid appreciation. Investors should expect modest growth in property values, consistent with historical trends and local economic conditions.
The combination of these factors—median home value, listing dynamics, and rental rates—implies a market where landlords and small-portfolio investors can maintain pricing power but should be cautious about expecting substantial increases in property values or rental income. Instead, the focus should remain on steady, reliable returns and the preservation of capital value.
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.