Location: Prescott Valley-Prescott, AZ | Metro: Flagstaff, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,440 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
U.S. Census Bureau data (2024)
The classification of ZIP code 86434 hinges on its financial metrics and demographic characteristics. With a Fair Market Rent (FMR) of $1460 for fiscal year 2024, this figure significantly outpaces the market rent at $661, indicating a strong potential for rental yields. However, the absence of home value data suggests that traditional investment strategies focusing on property appreciation might be less viable here.
The stability of the area is influenced by several factors, including the percentage of renters and median income levels. In ZIP 86434, 53.2% of residents are renters, which is a substantial portion of the population, pointing towards a stable demand for rental properties. The median income of $58,080 supports the ability of tenants to afford higher rents, further bolstering the stability aspect.
To determine whether ZIP 86434 represents a high-yield/low-stability market or a steady-cashflow zone, we must consider the disparity between FMR and market rent. The stark difference, with FMR being over twice the market rent, signals a high-yield environment. This gap suggests opportunities for significant returns through rental income, especially if landlords can secure tenants willing to pay closer to the FMR rates.
However, the stability indicators do not point to an unstable market. A high percentage of renters and decent median income levels mitigate the risk of low stability. These factors suggest that while the market offers high yield potential, it also maintains a reasonable level of stability.
In conclusion, ZIP 86434 leans towards being a high-yield market with moderate stability. The primary driver for this classification is the significant gap between the FMR ($1460) and the market rent ($661), which indicates a strong potential for rental income. While the lack of home value data and the missing days-on-market (DOM) information prevent a complete assessment, the available data on renter demographics and income levels support a moderately stable environment. For landlords and small-portfolio investors looking to maximize their cash flow, this ZIP code presents an attractive opportunity, albeit one that requires careful tenant selection to achieve the highest yields.
Data Sources: FMR data from HUD (2027). 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.