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 | $1,310 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $363,453 | 0.45% | F |
| 3BR | $2,270 | $517,991 | 0.44% | F |
| 4BR | $2,520 | $774,792 | 0.33% | F |
U.S. Census Bureau data (2024)
In Lake Havasu City, AZ (ZIP 86404), the real estate market presents a nuanced landscape that balances both opportunities and challenges for landlords and small-portfolio investors. The median home value stands at $507,718, which reflects a stable housing market. However, only 0.3% of listings have been reduced, indicating a seller's market where there is little pressure on homeowners to lower their asking prices. This suggests strong pricing power for landlords and investors who can hold onto properties without significantly reducing rents.
The median days on market (DOM) is 52 days, which is relatively short compared to national averages. This short DOM period signals that homes are selling quickly, reinforcing the notion of a robust demand for housing in the area. With limited reductions in listing prices and quick sales, it is evident that the market is resilient and likely to maintain current price levels over the next 12-24 months.
On the rental side, the Fair Market Rent (FMR) for ZIP 86404 in fiscal year 2024 is projected to be $1,380. In contrast, the actual market rent, as indicated by ZORI, is $1,880. This discrepancy between FMR and market rent suggests that there is room for landlords to maintain higher rental rates, given the current demand and supply dynamics. Investors can leverage this gap to achieve better returns on their rental properties.
For long-term investors, the setup implies a realistic appreciation thesis. Given the stable median home value and the strong rental market, the likelihood of property values increasing over time is high. This appreciation potential provides a solid foundation for those looking to build a portfolio in Lake Havasu City, as they can expect their investments to grow in value alongside steady rental income.
The combination of these factors—median home value, low percentage of price reductions, quick sales, and favorable rental dynamics—indicates a market that is poised for continued stability and growth. Landlords and small-portfolio investors should capitalize on these conditions to maximize their investment returns.
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.