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 | $329,886 | 0.45% | F |
| 3BR | $2,050 | $432,341 | 0.47% | F |
| 4BR | $2,250 | $554,266 | 0.41% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 86322 in Camp Verde, AZ, under the Section 8 program are significant. Tenant turnover can be a critical issue when comparing the market rent of $1,600 to the Fair Market Rent (FMR) set at $1,160 for FY 2024. Landlords might face higher turnover rates due to the disparity between what tenants can afford through vouchers and the actual market rates. This can lead to increased costs associated with finding new tenants, such as advertising and screening processes.
Vacancy exposure is another concern, as the Days on Market (DOM) for rental properties is not available, indicating that landlords might struggle to predict how long it will take to fill vacancies. This unpredictability can result in lost revenue during periods when units are unoccupied.
Deferred maintenance is also a risk factor. With a typical home value of $432,450 and a median income of $69,411, homeowners and landlords may find it challenging to keep up with necessary repairs and upgrades without assistance from Section 8 funds. The financial strain could lead to substandard living conditions if maintenance is delayed, which could attract regulatory scrutiny and negatively impact property values.
However, these risks must be weighed against the high concentration of renters in the area. With 23.5% of residents being renters, there is a strong likelihood of a robust demand for rental housing supported by Section 8 vouchers. This high renter density typically translates into a steady stream of qualified applicants seeking affordable housing options, which can mitigate some of the risks associated with tenant turnover and vacancy exposure.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.