Section 8 Fair Market Rent (FMR) for ZIP 86321 - 2027

Location: Prescott Valley-Prescott, AZ | Metro: Prescott Valley-Prescott, AZ MSA

FY 2027 Fair Market Rent Rates

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

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

3,065

Median Household Income

$94,006

Housing Units

1,049

Renter Percentage

86.6%

Occupancy Rate

95.8%

Renter Occupied

870

The economics of Section 8 housing in ZIP code 86321 operate under specific guidelines that landlords need to understand. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $1160 for fiscal year 2024. This figure is important because it is the maximum amount that the housing authority will pay towards a tenant's rent, based on the specific ZIP code conditions.

Local market rents, according to the Census ACS data, run at $613 for a similar two-bedroom unit. This discrepancy highlights the potential financial benefits for landlords who accept Section 8 vouchers, as they can receive a higher reimbursement rate than the typical market rent.

A voucher payment to landlords includes several components:

Tenant Portion: Tenants are generally required to contribute 30% of their adjusted income toward rent. If we assume an average adjusted income of $1000, the tenant would contribute approximately $300 towards rent.
Housing Authority Portion: The housing authority will cover the difference between the SAFMR and the tenant's contribution. In ZIP 86321, this means the authority would pay up to $860 ($1160 - $300).
Utility Allowances: Utility allowances vary but typically add an additional amount to the total reimbursement. For simplicity, let’s say utilities are allowed up to $100 per month. This would bring the total reimbursement to $960 per month ($860 + $100).

Note that the SAFMR is set specifically for this ZIP code, meaning it reflects the rental conditions unique to 86321. Landlords should also be aware that the actual reimbursement amount can fluctuate depending on the individual tenant’s income and any adjustments made by the housing authority.

In summary, for a two-bedroom apartment in ZIP 86321, the typical reimbursement gap or surplus is a surplus of $347 per month when comparing the SAFMR-based reimbursement ($960) against the local market rent ($613). This surplus provides a significant incentive for landlords to consider accepting Section 8 vouchers, ensuring steady and reliable income above typical market rates.

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.