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 | $368,413 | 0.4% | F |
| 3BR | $2,050 | $487,746 | 0.42% | F |
| 4BR | $2,250 | $581,936 | 0.39% | F |
U.S. Census Bureau data (2024)
Clarkdale, AZ (ZIP 86324), located within the Prescott Valley-Prescott, AZ MSA metro area, serves as a cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for a one-bedroom unit in the area for fiscal year 2024 is set at $1,250, while the market rent is estimated at $1,321. This indicates a minimal gap of just $71 between the FMR and the market rent, making it a stable and predictable source of income for landlords.
The median home value in Clarkdale stands at $472,804. However, this does not directly impact the cash flow from Section 8 properties, which are typically rented units rather than owned homes. The key metric here is the FMR, which ensures that landlords receive a fixed and reliable rental income, reducing the volatility often associated with market fluctuations.
With a 0.2% price-cut share, indicating that very few listings require significant price adjustments, and an N/A-day DOM (Days on Market), suggesting that units are generally occupied without prolonged vacancies, Clarkdale offers a low-risk environment for maintaining steady cash flows. The diversifier potential is less compelling given the renter share of 25.0%, which is relatively low, and the median income of $46,813, which does not suggest a high demand for appreciation plays.
A cash-flow anchor property like those found in ZIP 86324 is essential for any balanced Section 8 portfolio. It provides consistent and guaranteed income through government subsidies, allowing landlords to stabilize their financial planning and operations. While appreciation plays might offer higher returns in some markets, the predictability of FMR in Clarkdale ensures that landlords can rely on a steady stream of income, crucial for managing expenses and ensuring profitability over the long term.
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.