Location: Prescott Valley-Prescott, AZ | Metro: Flagstaff, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,440 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 86337 reveals a significant opportunity due to the disparity between the HUD Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the HUD FMR for ZIP 86337 is set at $1460, which is notably higher than the Census ACS reported market rent of $678. This means that landlords can expect to cashflow positively when renting to voucher tenants at the HUD FMR rate, as it far exceeds the typical market rent.
To further illustrate the potential, consider the median home value in ZIP 86337, which stands at $166,683. The rent-to-price ratio derived from these figures shows that rental income is relatively low compared to property values, indicating that owning property in this area could be more advantageous than renting. However, the positive cashflow from Section 8 vouchers makes rental investment particularly attractive.
In terms of days on market (DOM), the data indicates an average of N/A, suggesting that properties are either sold quickly or there is limited data available. Additionally, the price-cut share of 0.1% suggests that sellers are rarely forced to lower their asking prices, indicating a stable market environment. While these factors do not directly impact the decision to invest in rental properties, they contribute to the overall understanding of the local real estate market dynamics.
The strongest investor angle in ZIP 86337 is undoubtedly cashflow, given the substantial difference between the HUD FMR and the market rent. Landlords can secure steady, government-backed rental income that significantly outperforms the local market rates, making this area highly appealing for Section 8 investments.
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.