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 | $1,260 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,510 |
| 4 Bedrooms | $2,650 |
| 5 Bedrooms | $3,074 |
| 6 Bedrooms | $3,443 |
| 7 Bedrooms | $3,718 |
| 8 Bedrooms | $3,904 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,810 | $627,070 | 0.29% | F |
| 3BR | $2,510 | $831,522 | 0.3% | F |
| 4BR | $2,650 | $1,190,189 | 0.22% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP 86351, Sedona, AZ, begin with tenant turnover. The market rent stands at $2,738, while the Fair Market Rent (FMR) for FY 2024 is set at $1,710. This discrepancy suggests that landlords may struggle to retain tenants who can only afford the lower FMR rate, leading to frequent turnovers and increased administrative costs.
Vacancy exposure is another significant concern. With an average Days on Market (DOM) of 28 days, landlords might face periods where their properties are vacant and not generating income. This is particularly risky in an area where homes are valued at an average of $790,332, and the median household income is $81,203. High property values combined with relatively modest incomes create a scenario where deferred maintenance could become a reality, as many tenants may not have the financial means to cover unexpected repairs or upkeep beyond their rental payments.
However, these risks must be weighed against the high concentration of renters in the area. At 29.8%, the renter share of the population is substantial, indicating strong demand for rental housing. This high renter density often translates into higher demand for Section 8 vouchers, which can help stabilize occupancy rates and reduce the likelihood of prolonged vacancies.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 86351, Sedona, AZ, is moderate.
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.