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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $323,380 | 0.46% | F |
| 3BR | $2,050 | $405,069 | 0.51% | F |
| 4BR | $2,250 | $509,787 | 0.44% | F |
U.S. Census Bureau data (2024)
ZIP code 86326, located in Cottonwood, Arizona, is situated within the larger Prescott Valley-Prescott, AZ MSA. To understand its position within this metro area, let's analyze the provided figures.
The Fair Market Rent (FMR) for ZIP 86326 is set at $1,320 for fiscal year 2024. This figure represents the threshold for housing affordability under the Section 8 program. In comparison, the average market rent for the same ZIP is $1,728. This indicates that rental properties in ZIP 86326 are priced above the FMR, suggesting that it is not a value pocket but rather a mid-tier neighborhood when it comes to rents.
The median home value in ZIP 86326 stands at $397,558. This is lower than the average home value in the broader Prescott Valley-Prescott MSA, which typically ranges higher. The lower home value combined with a relatively high renter share of 34.5% could signal that ZIP 86326 is an attractive area for Section 8 participants. High renter shares often indicate areas where a significant portion of residents rely on affordable housing options, making such ZIP codes potentially lucrative for landlords participating in the Section 8 program.
In summary, ZIP 86326 appears to be a mid-tier neighborhood within the Prescott Valley-Prescott, AZ MSA based on its rental market dynamics. However, its combination of below-average home values and a substantial renter population suggests it could serve as a sweet spot for Section 8 investments, offering opportunities for landlords who can effectively manage properties at the FMR level.
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.