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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,050 | $402,696 | 0.51% | F |
| 4BR | $2,250 | $583,950 | 0.39% | F |
U.S. Census Bureau data (2024)
ZIP code 86334, located within the Prescott Valley-Prescott, AZ MSA, presents a unique rental market scenario. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,270. This figure is notably higher than the average market rent of $1,098 for the same ZIP code, indicating a potentially subsidized rental environment that landlords should be aware of.
The median home value in ZIP 86334 stands at $443,386, which is reflective of the broader housing market within the Prescott Valley-Prescott MSA. However, the renter share in this ZIP is 8.3%, suggesting a significant portion of the population relies on rental properties, including those supported by Section 8 subsidies.
Comparatively, within the MSA, ZIP 86334's characteristics point towards it being a mid-tier neighborhood. Its home values align closely with the overall market, while the higher FMR suggests a presence of subsidized rentals. This makes it neither a value pocket nor a premium sub-market but a middle ground where landlords can still find reasonable returns without the premium pricing seen in upscale areas.
A noteworthy divergence is the combination of a relatively high renter share with home values that are consistent with the broader metro area. This characteristic often signals a potential sweet spot for Section 8 landlords and small-portfolio investors, as it indicates a demand for affordable rental units without sacrificing too much in terms of property value.
To conclude, ZIP 86334 offers an opportunity for landlords who are willing to participate in the Section 8 program. With the FMR at $1,270, it ensures a stable income stream for those who qualify for the program, while the market rent and home values suggest a balanced investment option within the Prescott Valley-Prescott MSA.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.