Location: Prescott Valley-Prescott, AZ | Metro: Prescott Valley-Prescott, AZ MSA
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 86331 stands out due to its small resident population of only 231 individuals, making it one of the least populated areas under consideration. With 46.6% of residents renting their homes, it indicates a notable portion of the population relies on rental properties, despite the lack of data on median home values. The median income in this ZIP is $40,096, which is relatively low compared to national averages, suggesting that many residents might be seeking assistance through housing programs such as Section 8.
Section 8 vouchers play a crucial role in this ZIP's rental market. The Fair Market Rent (FMR) for ZIP 86331 in fiscal year 2024 is set at $1240, significantly higher than the reported market rent of $957 based on Census ACS data. This discrepancy means that landlords accepting Section 8 vouchers can potentially charge closer to the FMR, thereby receiving higher rents than those paid by non-voucher tenants. For small-portfolio investors looking to maximize returns, this ZIP presents an opportunity where the subsidy levels support higher rental income, which can help offset the lower median income of the area.
Given the limited population size and the high percentage of renters, the ZIP code 86331 appears to have a transitional data signature. The reliance on rental properties and the potential for higher rents through Section 8 vouchers suggest a dynamic market, but the small number of residents also implies that any changes could impact the stability of the area quickly. Investors should be aware of the potential for rapid shifts in demand and supply, which could affect vacancy rates and rental income over time. However, the current economic landscape, particularly the disparity between FMR and market rent, supports a positive outlook for landlords willing to accept Section 8 vouchers.
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.