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 | $1,150 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,430 |
| 5 Bedrooms | $2,819 |
| 6 Bedrooms | $3,157 |
| 7 Bedrooms | $3,410 |
| 8 Bedrooms | $3,581 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,650 | $311,698 | 0.53% | F |
| 3BR | $2,280 | $371,914 | 0.61% | D |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP code 86335 in Rimrock, AZ, are significant. First, consider tenant turnover. The market rent for the area is $1,295, while the Fair Market Rent (FMR) for FY 2024 stands at $1,320. This slight discrepancy can lead to frequent turnover as tenants might seek properties that offer the higher FMR subsidy, leaving landlords with the burden of finding new tenants and covering any associated costs.
Vacancy exposure is another concern. The Days on Market (DOM) data is not available, which makes it difficult to predict how long a property might remain vacant. This uncertainty can result in financial strain, as landlords must cover mortgage payments and other expenses without rental income during vacancy periods.
Deferred maintenance is also a risk factor. With a typical home value of $356,584 and a median household income of $64,455, there's a considerable gap between the cost of maintaining properties and the residents' ability to contribute to these costs. Landlords will likely bear the full brunt of any necessary repairs and upkeep, which can be financially challenging.
Despite these risks, the high renter share of 34.8% in ZIP 86335 indicates a robust demand for rental properties, particularly those accepting Section 8 vouchers. This high concentration of renters often translates into a steady stream of potential tenants who rely on government assistance to secure housing. As a result, landlords are less likely to experience prolonged vacancies and can manage their properties effectively with a reliable tenant base.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.