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 | $1,180 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,700 | $378,250 | 0.45% | F |
| 3BR | $2,350 | $445,132 | 0.53% | F |
| 4BR | $2,480 | $534,972 | 0.46% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP 86327 (Prescott Valley, AZ) for Section 8 investments, follow this decision tree based on the provided data:
1) Does the Fair Market Rent (FMR) of $1,570 cover the debt service on a property valued at $453,836?
No. The FMR of $1,570 is insufficient to cover typical debt service costs for a property priced at $453,836. Debt service, which includes mortgage payments, property taxes, insurance, and maintenance, would likely exceed this amount.
2) How does the market rent ($1,774 ZORI) compare to the FMR?
The market rent of $1,774 is above the FMR of $1,570. This suggests that properties in Prescott Valley can command higher rents outside of the Section 8 program.
3) Are there enough renters and days on market (DOM) to support demand?
It depends. With 9.0% of residents being renters and an average DOM of 72 days, the rental market shows moderate activity. However, the demand for Section 8 properties specifically must be considered. The percentage of renters who qualify for Section 8 assistance is not provided, so you cannot definitively assess the demand for Section 8 units based solely on these figures.
If you answered no to question 1, purchasing a property in Prescott Valley for Section 8 tenants is not advisable due to the high cost of the property relative to the income generated by the FMR. Even though the market rent is higher, it does not affect the viability of a Section 8 investment directly.
If you answered yes to question 2, it indicates that the area has a rental market that could potentially support higher rents, but this does not impact the primary decision for a Section 8 investment, which is the ability of the FMR to cover debt service.
If you answered it depends to question 3, then you need to research further into the specific demand for Section 8 housing in Prescott Valley. The overall rental market activity is not a direct indicator of the demand for subsidized housing.
In summary, unless the property price is significantly lower or the FMR increases, investing in Prescott Valley for Section 8 purposes is not recommended based on the current data. Consider other areas where the FMR more closely aligns with the debt service requirements of similar property values.
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.