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 analysis of ZIP code 86036 reveals a unique balance between yield and stability, making it an intriguing market for real estate investment, particularly for Section 8 landlords and small-portfolio investors.
On the yield axis, the Family Monthly Rent (FMR) for FY 2024 stands at $1860. This figure represents the government's estimate of the maximum rent that can be charged for properties participating in the Section 8 program. However, the absence of market rent and home value data suggests limited competition and potentially lower property costs, which could enhance the overall yield when compared to other markets with higher property values but similar FMRs.
Regarding stability, the ZIP code exhibits several indicators that point towards a relatively stable environment. The percentage of renters at 13.9% might seem low, but this is often associated with homeownership, which generally provides more stability in terms of occupancy and maintenance. The median household income of $78,250 indicates a solid financial base for residents, supporting consistent rental payments. While the days on market (DOM) is not available, the income level suggests that there is a steady demand for housing, which can contribute to lower vacancy rates and higher stability.
Given these factors, ZIP 86036 appears to be a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The presence of a reliable income level and the potential for lower property acquisition costs due to limited market data support this classification. However, the lack of comprehensive market data means that the exact yield potential remains somewhat speculative. Nonetheless, the stability derived from higher income levels and possibly lower competition makes it a viable option for investors seeking predictable returns.
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.