Location: Lake Havasu City-Kingman, AZ | Metro: Lake Havasu City-Kingman, 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 | $990 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $200,499 | 0.63% | D |
| 3BR | $1,760 | $275,538 | 0.64% | D |
| 4BR | $1,930 | $417,473 | 0.46% | F |
| 5BR | $2,239 | $602,444 | 0.37% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 86401 in Kingman, Arizona, reveals a competitive but manageable landscape. The HUD Fair Market Rent (FMR) for FY 2024 is set at $1260, which is slightly below the market rent of $1364 as measured by Zillow's Observed Rental Index (ZORI). This indicates that voucher tenants will cashflow marginally at the FMR rate, requiring landlords to be selective about unit quality and location to ensure profitability.
To further contextualize the rental market, consider the median home value in the area, which stands at $287,675. This yields a rent-to-price ratio of approximately 0.49%, suggesting that rental properties are relatively affordable compared to home values. This ratio can help investors gauge the potential demand for rental properties over homeownership, especially in light of the 31-day median Days on Market (DOM), indicating a reasonably quick turnover for listings.
The low 0.2% price-cut share suggests that sellers are generally not having to lower their asking prices significantly, implying a stable housing market. However, this does not directly impact the rental market dynamics unless there is a significant shift in the local economy or population trends that could alter the balance between renters and buyers.
In summary, the strongest investor angle in ZIP 86401 is likely to be cashflow, given the marginal difference between the HUD FMR and market rents. While appreciation and stability are also positive aspects, the ability to generate consistent income through rental properties, even with a slight margin, makes it an attractive option for Section 8 landlords and small-portfolio investors.
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.