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 | $1,550 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $1,860 |
| 3 Bedrooms | $2,310 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,710 | $322,167 | 0.53% | F |
| 2BR | $1,860 | $439,212 | 0.42% | F |
| 3BR | $2,310 | $614,757 | 0.38% | F |
| 4BR | $2,480 | $807,643 | 0.31% | F |
| 5BR | $2,877 | $1,041,331 | 0.28% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 86004, located in Flagstaff, AZ, within the Flagstaff, AZ MSA metro area, does not work favorably for landlords. The Fair Market Rent (FMR) for FY 2024 is set at $1950, whereas the market rent, as indicated by ZORI, stands at $2,129. This means that landlords may struggle to cover their costs if they adhere strictly to the FMR guidelines, as the market demands a higher rent.
Acquisition of properties in this ZIP code is relatively affordable. The median home value is $621,877, which is manageable for small-portfolio investors. Additionally, the average days on market (DOM) is 36, suggesting that homes sell quickly once listed. The low price-cut share of 0.2% further supports the notion that homes in this area are priced appropriately and do not require significant reductions to attract buyers.
Tenant demand is strong in ZIP 86004. With a total population of 36,394, nearly 37.2% of residents are renters. This high percentage indicates a robust market for rental properties, ensuring that landlords can find tenants without much difficulty.
In conclusion, while the rent math in ZIP 86004 presents a challenge due to the discrepancy between FMR and market rent, property acquisition remains affordable with quick sales and minimal price adjustments. The strong tenant demand, driven by a substantial renter share, provides a solid foundation for investment. Landlords should consider setting rents closer to the market rate to ensure profitability, despite the guidelines set by FMR.
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.