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 | $1,160 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $363,191 | 0.41% | F |
| 3BR | $2,060 | $504,776 | 0.41% | F |
| 4BR | $2,260 | $740,278 | 0.31% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 86406, located in Lake Havasu City, AZ, within the Lake Havasu City-Kingman, AZ MSA, reveals several key points for potential landlords and small-portfolio investors.
First, regarding the rent math, it does not work favorably for landlords. The Fair Market Rent (FMR) set at $1440 for fiscal year 2024 is notably lower than the market rent, which stands at $1,667 according to ZORI. This discrepancy suggests that landlords receiving Section 8 payments will be undercompensated compared to the local market rates.
Second, on the affordability of acquisition, the median home value in ZIP 86406 is $491,248. With a Days on Market (DOM) of 44 days and a price-cut share of just 0.3%, the real estate market indicates that homes are selling relatively quickly without significant price reductions. This points to a competitive market where acquiring properties may require timely decision-making and possibly bidding above asking prices.
Third, concerning tenant demand, the ZIP code has a total population of 25,067, with 22.4% of residents being renters. This suggests a moderate level of demand for rental properties, but it's important to note that the majority of the population owns their homes, which could limit the pool of potential tenants.
In conclusion, while there is a presence of tenant demand in ZIP 86406, the disparity between FMR and market rent makes the financials less attractive for landlords. Additionally, the competitive nature of the real estate market might pose challenges for acquiring properties affordably. Potential investors should carefully weigh these factors before entering this market.
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.