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 | $1,050 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,060 | $173,861 | 0.61% | D |
| 2BR | $1,310 | $301,703 | 0.43% | F |
| 3BR | $1,810 | $448,263 | 0.4% | F |
| 4BR | $2,010 | $564,863 | 0.36% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 86403, Lake Havasu City, AZ, presents a unique opportunity for both landlords and small-portfolio investors. With a median home value of $387,953, the area reflects a stable housing market that has seen minimal adjustments, as indicated by only 0.3% of listings being reduced. This suggests strong seller pricing power, which is further supported by the median days on market (DOM) of 43 days. Such a low DOM signals brisk sales activity, implying that homes are selling quickly at or near asking price.
On the rental side, the Federal Market Rent (FMR) for ZIP 86403 is set at $1,240 for fiscal year 2024, while the actual market rent, measured by Zillow's Observed Rental Index (ZORI), stands at $1,492. This gap indicates that landlords can command higher rents compared to government estimates, which could be advantageous for cash flow management.
For long-term investors, the setup in Lake Havasu City points towards a moderate appreciation thesis. The stability in home values and the slight increase in market rents suggest a steady growth trajectory rather than explosive appreciation. Long-term investors should anticipate a gradual rise in property values, driven by consistent economic fundamentals and the natural inflationary pressures on housing costs.
The combination of these factors—stable home values, low DOM, and a positive rental environment—implies a resilient market that is likely to continue supporting both ownership and rental investments. Landlords and investors can leverage the current conditions to secure properties at fair market values and enjoy steady rental income, with the expectation of modest capital appreciation over the next 12-24 months.
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.