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 | $1,180 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,690 | $359,631 | 0.47% | F |
| 3BR | $2,340 | $425,393 | 0.55% | F |
| 4BR | $2,470 | $530,373 | 0.47% | F |
| 5BR | $2,865 | $612,370 | 0.47% | F |
U.S. Census Bureau data (2024)
ZIP 86314, located in Prescott Valley, AZ, and part of the Prescott Valley-Prescott, AZ MSA metro, presents a unique opportunity within a Section 8 portfolio strategy. This area serves best as a cash-flow anchor.
The median Fair Market Rent (FMR) for ZIP 86314 in fiscal year 2024 is set at $1,320, which is significantly lower than the market rent of $1,767. This creates a spread of $447 per month, allowing landlords to maintain positive cash flow while still adhering to Section 8 guidelines. Additionally, the median home value in the area is $437,065, indicating a relatively stable housing market.
The low FMR relative to market rent ensures that landlords can secure a steady stream of income from tenants participating in the Section 8 program. While the 0.3% price-cut share and 28-day Days on Market (DOM) suggest some appreciation potential, these factors alone do not outweigh the benefits of having a reliable cash flow source.
Furthermore, with a renter share of 32.9% and a median income of $69,208, the demand for affordable rental units is present, making ZIP 86314 a suitable location for anchoring cash flow within a Section 8 portfolio. Landlords should focus on properties that offer solid returns and stability, leveraging the existing tenant base and the predictability of government-assisted rents.
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.