Location: Navajo County, AZ | Metro: Navajo County, AZ
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 86042 within the Navajo County, AZ metro area reveals several key insights for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,300. However, the current market rent, according to Census ACS data, stands at $1,079. This discrepancy suggests that landlords may struggle to charge the FMR due to lower market rates, indicating that the rent math does not fully support the higher FMR target.
Regarding the affordability of acquisitions, the data shows a median home value of N/A, which means there's no specific dollar figure available to anchor investment decisions. Additionally, the average days on market (DOM) and the percentage of homes that required a price cut are also not provided, making it difficult to assess the ease of acquiring properties in this ZIP code.
The third question looks at tenant demand. With a total population of 2,019 and a renter share of 45.2%, there is a notable demand for rental properties. This translates to approximately 910 renters in the area, providing a stable base for rental income.
Verdict: While there is a clear tenant demand in ZIP 86042, the current market rent falls short of the Fair Market Rent target, suggesting potential challenges in achieving desired rental yields. The lack of specific data on median home values, days on market, and price-cut percentages hinders a comprehensive assessment of property acquisition costs and timelines. Landlords should focus on understanding local market dynamics and possibly explore strategies to increase rental income beyond the current market rate while being cautious about overpaying for acquisitions without robust data on property values and turnover times.
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.