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 | $1,600 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $1,920 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,570 |
| 5 Bedrooms | $2,981 |
| 6 Bedrooms | $3,339 |
| 7 Bedrooms | $3,606 |
| 8 Bedrooms | $3,786 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,380 | $523,309 | 0.45% | F |
U.S. Census Bureau data (2024)
ZIP 86015, located within the Flagstaff, AZ MSA, serves as an ideal appreciation play within a Section 8 portfolio strategy. The current Fair Market Rent (FMR) for ZIP 86015 in fiscal year 2024 is set at $2040. While the market data for days on market (DOM) and price-cut shares are currently unavailable, the median home value stands at $545,328. This figure suggests that the area is experiencing stable prices, with minimal fluctuations, which is conducive to long-term investment.
The median income in ZIP 86015 is $119,722, indicating a relatively affluent population. However, only 5.9% of the residents are renters, suggesting a strong potential for appreciation as the area continues to attract buyers. Despite the low renter share, the stable rental market, supported by the FMR, ensures a consistent cash flow for Section 8 properties.
A key indicator for appreciation plays is the trend towards a more balanced market. Recent reports suggest that Flagstaff's real estate market is shifting towards a buyer-friendly environment, characterized by increasing inventory and homes staying on the market for slightly longer periods. This transition is likely to stabilize prices further, reducing the risk of sudden drops while maintaining the potential for gradual growth.
In conclusion, ZIP 86015 is best suited as an appreciation play within a Section 8 portfolio. Its stable median home values, combined with a growing but still moderate inventory, make it an attractive option for investors looking to capitalize on long-term appreciation. Additionally, the high median income supports the stability of the rental market, ensuring that Section 8 vouchers remain a viable and reliable source of income for these properties.
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.