Location: Prescott Valley-Prescott, AZ | Metro: Prescott Valley-Prescott, 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 | $1,250 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,640 |
| 5 Bedrooms | $3,062 |
| 6 Bedrooms | $3,429 |
| 7 Bedrooms | $3,703 |
| 8 Bedrooms | $3,888 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,800 | $363,924 | 0.49% | F |
| 3BR | $2,490 | $559,234 | 0.45% | F |
| 4BR | $2,640 | $714,316 | 0.37% | F |
| 5BR | $3,062 | $807,410 | 0.38% | F |
U.S. Census Bureau data (2024)
ZIP 86301, located in Prescott, Arizona, within the Prescott Valley-Prescott MSA, offers a strategic fit for a Section 8 portfolio. It serves primarily as an appreciation play due to its low price-cut share and relatively short days on market (DOM).
The Fair Market Rent (FMR) for ZIP 86301 in fiscal year 2024 is set at $1,580, which is lower than the current market rent of $1,913. This indicates that properties in this area can potentially command higher rents than what is covered by Section 8 vouchers. However, the primary focus here should be on the potential for property value appreciation rather than cash flow.
The median home value in ZIP 86301 is $540,815, and the price-cut share stands at only 0.3%, suggesting that sellers are reluctant to reduce their asking prices. This low price-cut share, combined with a DOM of 46 days, points to a robust local real estate market where properties sell quickly without significant discounts. As such, ZIP 86301 provides a good opportunity for appreciation, as property values are likely to increase over time due to strong demand and limited supply.
The renter share in ZIP 86301 is 32.1%, indicating a moderate presence of renters. The median household income is $72,652, which supports the notion that there is a stable tenant base capable of paying market rents. While this ZIP code could also serve as a diversifier due to its renter share and median income, the most compelling argument for its inclusion in a Section 8 portfolio is as an appreciation play.
Landlords and small-portfolio investors looking to capitalize on property value growth should consider acquiring properties in ZIP 86301. The combination of quick sales, low price-cut share, and a growing real estate market makes this area particularly attractive for long-term investment strategies focused on asset appreciation.
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.