Section 8 Fair Market Rent (FMR) for ZIP 86440 - 2027

Location: Lake Havasu City-Kingman, AZ | Metro: Lake Havasu City-Kingman, AZ MSA

Investment Score for ZIP 86440

D
Monthly Rent (2BR)
$1,270
Median Price (2BR)
$204,770
1% Rule
0.62%
Annual Yield
7.44%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,020
1 Bedroom$1,020
2 Bedrooms$1,270
3 Bedrooms$1,760
4 Bedrooms$1,950
5 Bedrooms$2,262
6 Bedrooms$2,533
7 Bedrooms$2,736
8 Bedrooms$2,873

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,270 $204,770 0.62% D
3BR $1,760 $312,388 0.56% F
4BR $1,950 $371,970 0.52% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
8,853
Median Household Income
$63,188
Housing Units
5,062
Renter Percentage
17.6%
Occupancy Rate
75.9%
Renter Occupied
675

The real estate market in Mohave Valley, Arizona (ZIP 86440), presents a nuanced picture for landlords and small-portfolio investors. With a median home value at $303,744, the area reflects a stable housing price environment. However, the recent trend of only 0.3% of listings reducing their asking prices indicates that sellers still maintain considerable pricing power. This suggests that demand remains robust relative to supply, which can be advantageous for those looking to sell or refinance properties.

The median days on market (DOM) being listed as N/A could imply that either the data is incomplete or there's a quick turnover of properties, indicating strong buyer interest. In either case, the combination of high median home values and minimal reductions in listing prices signals a market where landlords can likely continue to command higher rents without significant concessions.

On the rental side, the Fair Market Rent (FMR) for ZIP 86440 is projected at $1120 for fiscal year 2024, compared to the current market rate of $895 based on Census ACS data. This gap suggests an upward pressure on rents, potentially allowing landlords to increase rental rates closer to the FMR level. The discrepancy between FMR and actual market rents also points to a potential undervaluation of rental properties, which could translate into increased cash flow for investors willing to hold onto their assets.

For long-term investors, the setup in Mohave Valley implies a realistic appreciation thesis. The stable housing prices coupled with the projected rise in rental rates indicate that property values are unlikely to depreciate significantly over the next 12-24 months. Moreover, the upward trend in rents could drive further appreciation as the area becomes more attractive to renters and buyers alike. While the immediate returns might be modest, the long-term prospects suggest a steady growth trajectory for property values, making it a favorable location for those seeking consistent asset appreciation.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.