Location: Navajo County, 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,730 | $173,037 | 1% | C |
| 3BR | $2,110 | $237,731 | 0.89% | C |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 86047 in Winslow, AZ, reveals some interesting dynamics when comparing the Federal Market Rent (FMR) and market rent against the median home value. The annualized FMR for a 2BR unit is $1460, while the market rent is $957 based on Census ACS data.
To derive the implied gross yield, we start with the FMR scenario. With an annual rent of $1460, the gross yield would be calculated as follows:
$1460 / $203,202 = 0.0072 or 0.72%
This figure represents the rental income relative to the median home value in the area. However, it's important to note that this yield is quite low, suggesting that properties in this ZIP code might not generate significant rental income through Section 8 if they are priced at the median home value.
Moving to the market rent scenario, where the annual rent is $957, the calculation for gross yield is:
$957 / $203,202 = 0.0047 or 0.47%
This scenario presents an even lower gross yield, indicating that market rents are significantly below the FMR. Given the 39.1% renter density in the area, it's clear that there is a substantial portion of the population that could potentially benefit from Section 8 housing assistance.
The N/A-day DOM (Days on Market) suggests that the data for how long properties typically remain on the market is incomplete or not available, which can complicate investment decisions. However, focusing on the gross yields derived from the FMR and market rent, it's evident that the FMR scenario offers a higher return, albeit still relatively modest at 0.72%. This makes it the more realistic option for landlords and small-portfolio investors looking to participate in the Section 8 program in Winslow, AZ.
In conclusion, while both scenarios indicate low gross yields, the FMR-based scenario at 0.72% provides a better financial outlook compared to the market rent scenario at 0.47%. Landlords should consider these figures carefully alongside the local renter density and other factors before making investment decisions in ZIP code 86047.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.