Location: Prescott Valley-Prescott, AZ | Metro: Prescott Valley-Prescott, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,080 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
The economics of Section 8 in ZIP code 86302, located in Prescott Valley-Prescott County, Arizona, are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $1400 per month for fiscal year 2024. This rate is specifically tailored for this ZIP code, ensuring it reflects the local rental market conditions.
Landlords often wonder about the actual payment they receive when a tenant uses a Section 8 voucher. The voucher system works by covering the difference between what the tenant can afford and the actual rent. Tenants typically contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1400, then the tenant would pay around $420 per month, which is 30% of $1400. However, the exact amount varies based on the individual tenant's income.
Once the tenant’s contribution is determined, the remaining amount is paid by the housing authority up to the SAFMR limit. In this case, if the tenant pays $420, the housing authority would cover the rest up to $1400, making the total rent $1400. It's important to note that the housing authority will only reimburse up to the SAFMR, so if your rent exceeds $1400, you won't be compensated for the excess. For instance, if you charge $1600 for a two-bedroom unit, the housing authority will only pay $980 ($1400 - $420), leaving you with a reimbursement gap of $120 per month.
In addition to the base rent, there are utility allowances that can be factored into the total compensation. These allowances vary but are designed to help cover typical utility costs. Landlords should check with the local housing authority to determine the specific utility allowance for their property type and size in ZIP 86302.
To summarize, the SAFMR for a two-bedroom apartment in ZIP 86302 is $1400. Landlords will receive the tenant’s contribution plus the housing authority’s payment, up to this limit. If the rent is higher than $1400, there will be a reimbursement gap where the landlord does not receive the full rent from the housing authority. Conversely, if the rent is lower than $1400, the landlord receives the full rent, and there is no surplus or shortfall from the housing authority.
Given the SAFMR of $1400 and assuming a tenant contribution of $420, the typical reimbursement gap for a two-bedroom unit priced above $1400 is $120 per month. If the unit is priced below $1400, the landlord will receive the full rent without any shortfall.
Data Sources: FMR data from HUD (2027).
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.