Location: Navajo County, AZ | Metro: Navajo County, AZ
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 | $850 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,460 | $227,945 | 0.64% | D |
U.S. Census Bureau data (2024)
The renter's perspective in ZIP code 86025, with a median income of $56,919, reveals significant challenges when it comes to housing affordability. The market rate rent stands at $910 according to the Census ACS, which already represents a substantial burden for many households. However, the situation becomes even more critical when comparing this figure to the Fair Market Rent (FMR) standard set at $1,250 for metro FY 2026.
To put these numbers into context, let's break down the financial implications. A household earning the median income of $56,919 would find it difficult to meet the $910 market rate, especially considering other essential expenses such as utilities, groceries, healthcare, and transportation. The disparity between the market rate and the median income suggests that many renters might struggle to cover their housing costs without assistance.
Moreover, the FMR of $1,250 is significantly higher than the market rate, indicating that the rental market in ZIP 86025 is below the federal standard for affordable housing. This gap highlights the need for rental subsidies, particularly through Section 8 vouchers, which can help bridge the financial divide for low-income families.
Given that 36.5% of the 5,226 population are renters, the affordability gap has direct implications for landlord competition. Landlords who accept Section 8 vouchers may find themselves with a more stable tenant base, as voucher recipients have a guaranteed source of income to cover rent. On the other hand, landlords who rely solely on cash-paying tenants face the challenge of attracting and retaining renters who can afford the market rate without assistance.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. Accepting Section 8 vouchers can provide a steady stream of rental income, reduce vacancy rates, and ensure long-term tenancy. While the voucher payment of $1,250 exceeds the current market rate of $910, it aligns more closely with the FMR standard, offering a more sustainable approach to renting in ZIP 86025. For those landlords aiming to capitalize on the rental market's realities, embracing vouchers is a strategic move towards stability and success.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.