Location: Flagstaff, AZ | Metro: Flagstaff, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,450 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
U.S. Census Bureau data (2024)
The real estate market in ZIP 86023 presents a unique set of conditions that both landlords and small-portfolio investors should consider carefully. Despite the lack of specific data on median home values, the percentage of listings that have been reduced, and the median days on market (DOM), we can still draw meaningful insights based on available information.
The Fair Market Rent (FMR) for ZIP 86023 is projected at $1860 for fiscal year 2024, which stands in stark contrast to the current market rental rate of $705 as reported by the Census Bureau's American Community Survey (ACS). This significant gap suggests strong potential for rental income growth, especially if the FMR reflects an accurate trend in the local housing market. Landlords and investors can leverage this by gradually adjusting their rental rates to align with the FMR, thereby increasing their cash flow.
While the data does not provide a clear picture of the median home value or the number of days homes are typically on the market, the presence of reduced listings signals a cautious seller's market. Sellers are willing to negotiate on price, which could indicate that they are eager to close deals quickly. For long-term investors, this scenario might imply that there is a window of opportunity to acquire properties at potentially lower-than-market prices, setting the stage for future appreciation.
The realistic appreciation thesis for ZIP 86023 hinges on several factors, including economic growth, job creation, and population trends. With the rental market showing a substantial increase in fair market rates, it is reasonable to expect that property values will follow suit, albeit with some lag. Investors should be prepared for a period where rental income growth outpaces property value appreciation, but the overall upward trend in rental rates is a positive sign for the future.
In summary, the current dynamics in ZIP 86023 favor those who are looking to capitalize on rental income growth. The disparity between the FMR and the current market rental rate suggests that there is room for adjustment, and the presence of reduced listings indicates a sellers' market that could benefit long-term investors seeking to acquire assets at favorable prices. While direct predictions cannot be made, the setup implied by the data points towards a positive outlook for both rental and property value growth over the next 12-24 months.
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.