Section 8 Fair Market Rent (FMR) for ZIP 86031 - 2027

Location: Navajo County, AZ | Metro: Navajo County, AZ

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,020
1 Bedroom	$1,110
2 Bedrooms	$1,450
3 Bedrooms	$1,800
4 Bedrooms	$1,910
5 Bedrooms	$2,216
6 Bedrooms	$2,482
7 Bedrooms	$2,681
8 Bedrooms	$2,815

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,818

Median Household Income

$32,500

Housing Units

878

Renter Percentage

27.9%

Occupancy Rate

78.8%

Renter Occupied

193

In ZIP code 86031, the economics of Section 8 vouchers can be quite different from the local market rent. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $1,400 per month for fiscal year 2026. This figure is significantly higher than the local market rent, which according to the Census ACS, averages around $871 per month.

The SAFMR serves as an upper limit on what the federal government will pay toward a tenant's rent through the Section 8 Housing Choice Voucher program. However, the actual amount paid by the voucher depends on several factors, including the tenant's income and the local market conditions. Here’s a breakdown of how it works:

Tenant Portion: Tenants typically pay 30% of their adjusted monthly income toward rent. If a tenant has an adjusted monthly income of $1,000, they would pay $300 toward the rent of a two-bedroom unit.
Voucher Payment: The voucher makes up the difference between the tenant's contribution and the SAFMR, but only up to the SAFMR limit. For a tenant paying $300, the voucher would cover the remaining $1,100, assuming the landlord charges no more than the SAFMR.
Utility Allowances: Utility allowances are also factored into the voucher payment. These allowances vary based on location and household size, but they do not directly affect the rent reimbursement. Landlords should ensure that the total rent plus utilities does not exceed the SAFMR.

Given the SAFMR of $1,400 and the average local market rent of $871, landlords might wonder about the potential surplus. In reality, the reimbursement gap or surplus depends on the specific tenant's income and the actual rent charged. Since the average market rent is below the SAFMR, there is a potential for landlords to charge closer to the SAFMR and receive full reimbursement without exceeding the voucher limit. However, if the landlord charges exactly $871, the reimbursement would be less, as the voucher pays only up to 30% of the tenant's income above that amount.

To illustrate, if a landlord charges $1,400 for a two-bedroom unit and the tenant contributes $300, the voucher would cover the remaining $1,100. This results in no gap or surplus for the landlord. Conversely, if the landlord charges the local market rate of $871 and the tenant pays $300, the voucher would cover $571, leading to a surplus of $299 for the landlord. This surplus occurs because the SAFMR is higher than the actual rent charged.

Overall, the typical reimbursement gap or surplus for a two-bedroom unit in ZIP 86031 can range widely depending on the rent charged and the tenant's income. However, with the current SAFMR and market rates, landlords have the opportunity to charge closer to the $1,400 SAFMR and still receive full reimbursement, thus avoiding any financial gaps.

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.