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 | $300,062 | 0.49% | F |
| 3BR | $2,050 | $416,262 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 86332 is located in Congress, Arizona, a small suburban neighborhood with a total population of 2,316. Only 18.0% of residents are renters, indicating a primarily owner-occupied community. The median household income here is $49,891, which is relatively modest compared to the median home value of $372,110. This suggests that homeownership is more common among those with higher financial means.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 86332 as of the fiscal year 2024 is set at $1,280. However, the actual market rent based on Census ACS data stands significantly lower at $871. This discrepancy between the FMR and the market rent indicates a potential opportunity for landlords and small-portfolio investors who can leverage the higher voucher amounts to either increase their rental income or improve property conditions without raising rents beyond what voucher recipients can afford.
Given these figures, ZIP 86332 appears to be a suitable location for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher FMR provides a cushion against the lower market rent, ensuring steady income without the need for active property management. On the other hand, for hands-on investors looking to add value, there is room to upgrade properties and potentially command rents closer to the FMR while still being attractive to voucher holders.
To summarize:
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.