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 | $236,216 | 0.63% | D |
| 3BR | $2,050 | $316,866 | 0.65% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 86333 (Mayer, AZ) reveals a nuanced picture when comparing the Fair Market Rent (FMR) to the market rent. Using the annualized 2BR FMR of $1190 for FY 2024, the implied gross yield is approximately 4.6%. This calculation is derived from multiplying the monthly FMR by 12 months, yielding an annual rental income of $14,280, then dividing that by the median home value of $308,370.
In contrast, using the market rent figure of $1,132 from the Census ACS, the implied gross yield drops slightly to about 4.4%. This is calculated similarly, with the annual rental income being $13,584 ($1,132 multiplied by 12), and then dividing by the median home value.
The difference between these two yields is marginal, at just 0.2 percentage points. However, considering the 13.4% renter density in Mayer, AZ, the market rent scenario appears more realistic. The lower renter density suggests that a significant portion of potential tenants might be seeking government assistance, such as Section 8, rather than paying market rates. Additionally, the N/A-day Days on Market (DOM) indicates that properties may not be turning over quickly enough to consistently command market rents. Therefore, landlords and small-portfolio investors should anticipate a gross yield closer to the FMR-based figure of 4.6% when evaluating properties in ZIP 86333 under a Section 8 framework.
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.