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 | $1,020 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $2,050 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $457,158 | 0.32% | F |
| 3BR | $2,050 | $724,492 | 0.28% | F |
| 4BR | $2,250 | $918,429 | 0.24% | F |
| 5BR | $2,610 | $1,115,841 | 0.23% | F |
U.S. Census Bureau data (2024)
ZIP code 86305, located in Prescott, AZ, is situated within the Prescott Valley-Prescott, AZ Metropolitan Statistical Area (MSA). Its Fair Market Rent (FMR) for fiscal year 2024 is set at $1230, which is significantly lower than the market rent of $2,023. This indicates that 86305 offers rental properties at a discount compared to the broader market, making it an attractive option for tenants seeking affordable housing.
The median home value in ZIP 86305 stands at $714,813, which is above the typical home value found in other ZIP codes within the Prescott Valley-Prescott MSA. This suggests that while rental units are priced lower, homeownership comes at a premium. The 19.1% renter share is notably higher than the average for the region, indicating a substantial portion of the population relies on rentals.
Based on these figures, ZIP 86305 can be classified as a value pocket for rental investments within its metro area. The disparity between the FMR and market rent, combined with the relatively high renter share, signals a favorable environment for landlords and small-portfolio investors looking to capitalize on affordable housing opportunities. Despite the premium on home values, the rental market presents a cost-effective entry point for those interested in Section 8 properties.
To summarize, the low FMR and high renter share make ZIP 86305 a particularly interesting location for Section 8 real estate investments. It provides a unique blend of affordability for renters and potential profitability for landlords within the context of a generally higher-priced real estate market.
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.