Location: Flagstaff, AZ | Metro: Flagstaff, AZ MSA
| 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 |
U.S. Census Bureau data (2024)
ZIP 86011, located in Flagstaff, AZ MSA metro, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for ZIP 86011 in fiscal year 2024 is set at $2,040, which significantly exceeds the market rent of $1,141. This spread provides a substantial buffer against potential market downturns, ensuring steady cash flow from tenants receiving Section 8 vouchers.
The lack of a median home value does not hinder this assessment; instead, it emphasizes the importance of focusing on rental properties. Given that the median income is not specified, we must rely on the rent-to-income ratio and other factors to evaluate the viability of this strategy. With the FMR being notably higher than the market rent, landlords can secure reliable income streams, even if there are fluctuations in property values or market conditions.
The high FMR also indicates that the government recognizes the need for higher subsidies in this area, likely due to cost-of-living considerations or specific economic conditions. This makes ZIP 86011 particularly attractive for landlords looking to stabilize their portfolios and ensure consistent returns.
While the appreciation potential and diversification benefits are not quantified, the cash-flow anchor role is clear and compelling. Landlords should consider the strong demand for affordable housing in this ZIP code, as well as the potential for long-term tenancy, which can further enhance the stability of the investment.
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.