Location: Prescott Valley-Prescott, AZ | Metro: Flagstaff, AZ MSA
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 | $1,440 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,730 | $408,351 | 0.42% | F |
| 3BR | $2,110 | $509,652 | 0.41% | F |
| 4BR | $2,320 | $668,190 | 0.35% | F |
U.S. Census Bureau data (2024)
The ZIP code 86046, located in Williams, Arizona, presents a market in motion, characterized by a balance between supply and demand that leans slightly towards supply outpacing demand. This inference is drawn from the comparison of the Fair Market Rent (FMR) at $1,580 for the fiscal year 2024, against the actual market rent of $1,204 based on Census ACS data. The gap suggests that landlords might be facing some pressure to adjust their rental prices to match the current market conditions.
A further indication of this dynamic is the low price-cut share of 0.2%. While this figure is quite minimal, it still points towards a slight oversupply, as even a small percentage can reflect a competitive market environment where landlords are willing to reduce rents to attract tenants. The median home value of $437,823 provides context on the overall housing cost, but the absence of days on market (DOM) data means we cannot assess the speed at which homes are being sold or rented.
The 16.2% renter share is noteworthy. In a broader perspective, a lower proportion of renters typically implies less immediate pressure on rental properties but could indicate longer-term housing challenges. For instance, a smaller rental market may suggest that many residents prefer to own rather than rent, which could mean fewer available rental units and potentially higher competition among landlords to fill vacancies. However, the relatively stable rental market, as evidenced by the close FMR and market rent figures, suggests that while there is some pressure, it is manageable.
Landlords and small-portfolio investors should be aware of these dynamics. A market where supply slightly exceeds demand requires careful management of rental pricing and property maintenance to ensure competitiveness. Additionally, understanding the local preference for homeownership over renting can inform investment strategies, particularly in terms of the types of properties to acquire and manage.
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.