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 | $1,440 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,450 |
| 5 Bedrooms | $2,842 |
| 6 Bedrooms | $3,183 |
| 7 Bedrooms | $3,438 |
| 8 Bedrooms | $3,610 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,730 | $465,507 | 0.37% | F |
| 3BR | $2,270 | $600,821 | 0.38% | F |
| 4BR | $2,450 | $777,821 | 0.31% | F |
U.S. Census Bureau data (2024)
A landlord considering ZIP 86017, Munds Park, AZ for a Section 8 investment must follow a structured decision-making process. The first step involves evaluating whether the Fair Market Rent (FMR) of $1940 for fiscal year 2024 can cover the debt service on a property valued at $583,914. To determine this, calculate the monthly debt service based on the property value and typical financing terms. Assuming a 30-year mortgage at an interest rate of 4%, the monthly payment would be approximately $2,830. Given that the FMR is significantly lower than this amount, the answer to the first question is No.
The second question concerns comparing the market rent to the FMR. In this case, the market rent is listed as N/A, which means there is insufficient data to make a direct comparison. This lack of information introduces uncertainty into the analysis, making it difficult to proceed without further investigation. Therefore, the response to this question is It Depends.
The third question evaluates the rental demand in the area. With 16.4% of residents being renters and the days on market (DOM) for rental properties being N/A, the demand signal is mixed. A rental rate of 16.4% suggests a relatively low proportion of the population seeking rentals, but the absence of DOM data prevents a full assessment of how quickly rental units are occupied. Thus, the answer to this question is also It Depends.
To summarize, if the landlord's primary concern is covering debt service with the FMR, then investing in Munds Park, AZ is not advisable given the current data. However, the lack of market rent and DOM data complicates the decision regarding demand and profitability beyond basic debt coverage. Further research is required to clarify these points.
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.