Location: Prescott Valley-Prescott, AZ | Metro: Flagstaff, AZ MSA
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 86320, located in the Prescott Valley-Prescott, AZ MSA, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the significant spread between the Fair Market Rent (FMR) of $1,460 for the fiscal year 2024 and the current market rent of $987. Additionally, the median home value in this area stands at $224,175, indicating that properties here are generally affordable.
The substantial difference between the FMR and the market rent suggests that landlords can expect higher rents through Section 8 vouchers compared to typical market rates. This makes 86320 an attractive location for generating positive cash flow. The median income of $42,609 further supports the idea that there is a steady demand for subsidized housing, making it a reliable anchor in any investment portfolio.
While the area does not present immediate opportunities for rapid appreciation, given the lack of specific data on price-cut shares and days on market (DOM), it offers a stable foundation for a Section 8 strategy. With a renter share of 13.5%, there is a moderate presence of renters, which aligns well with the goal of securing consistent cash flow rather than focusing solely on appreciation potential.
In conclusion, ZIP 86320 serves as a cash-flow anchor due to the favorable spread between FMR and market rent, along with the reasonable median home value. These factors ensure steady returns and reliability for landlords and small-portfolio investors participating in the Section 8 program.
Data Sources: FMR data from HUD (2027). 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.