Section 8 Fair Market Rent (FMR) for ZIP 84003 - 2027

Investment Score for ZIP 84003

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	$1,360
1 Bedroom	$1,360
2 Bedrooms	$1,560
3 Bedrooms	$2,160
4 Bedrooms	$2,610
5 Bedrooms	$3,028
6 Bedrooms	$3,391
7 Bedrooms	$3,662
8 Bedrooms	$3,845

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,360	$383,690	0.35%	F
2BR	$1,560	$406,638	0.38%	F
3BR	$2,160	$508,435	0.42%	F
4BR	$2,610	$584,308	0.45%	F
5BR	$3,028	$874,786	0.35%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 84003 (American Fork, UT) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 84003 in American Fork, UT, as of 2026, are as follows: - 0BR: $1460 - 1BR: $1470 - 2BR: $1700 - 3BR: $2360 - 4BR: $2850 These FMRs represent the maximum rent that a Section 8 voucher holder can pay based on the size of their unit. However, the actual rental market in American Fork is significantly higher. For instance, the Zillow median price for a 2BR property is $405,051, which translates to a monthly rent of approximately $1700 if we assume a typical rent-to-price ratio. This means the FMR for a 2BR unit is exactly equal to the median rental price, suggesting that voucher holders might struggle to find affordable housing options unless they are willing to compromise on location or quality. The constraints for voucher holders are clear: they must find units that do not exceed the FMR limits. Given the high occupancy rate of 96.2%, finding available units could be challenging. Additionally, the fact that the FMR for a 2BR unit represents only 17.0% of the median household income indicates that voucher holders are likely to face significant financial pressure even when renting within these limits. #### Affordability & Renter Profile The population of American Fork is 57,430, with 26.3% being renters. The median household income is $120,330, which is quite high compared to national averages. This suggests that the area attracts a relatively affluent demographic, which is reflected in the high median home values and rental prices. The tight market conditions, with a very high occupancy rate, indicate that there is strong demand for rental properties, making it a competitive environment for both tenants and landlords. Given the high income levels, the majority of renters in American Fork are likely to be able to afford market-rate rents without assistance. However, the 26.3% who are renters might include families, students, and young professionals who are looking for affordable living options. The FMR data shows that the cost of living for those relying on Section 8 vouchers is particularly strained, especially for larger units like 3BR and 4BR apartments where the FMR is much lower than the market rate. #### Investor Angle From an investor perspective, the ZIP code 84003 presents a mixed picture. The FMRs are set at levels that are significantly below the market rates, which means that landlords who want to participate in the Section 8 program will have to accept lower rents than what they could get in the open market. For example, a 2BR unit with a Zillow median price of $405,051 would typically command a monthly rent of around $1700, but the FMR is also $1700. This implies that landlords might just break even or make minimal profits if they choose to accept Section 8 vouchers. The price-to-FMR ratio of 19.9x for a 2BR unit highlights the disparity between the median home value and the FMR. This ratio suggests that the market is highly inflated relative to the FMR, making it difficult for investors to achieve positive cash flow when renting to voucher holders. Furthermore, the high median income and tight market conditions imply that there is a strong demand for market-rate rentals, which could be more profitable for landlords. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on smaller units such as 0BR and 1BR apartments. These units have FMRs of $1460 and $1470 respectively, which are well below the median rental price for a 2BR unit. By targeting smaller units, investors can potentially attract voucher holders while still maintaining a reasonable profit margin. 2. **Consider Non-Section 8 Rentals**: Given the high median income and strong demand for market-rate rentals, investors might find it more lucrative to rent to non-voucher holders. This strategy would allow them to charge higher rents and potentially achieve better cash flow. For instance, a 3BR unit with a Zillow median price of $405,051 would likely command a monthly rent of over $2360, significantly above the FMR. 3. **Location Matters**: Even within the ZIP code, there might be pockets where rents are slightly lower due to differences in neighborhood desirability or property condition. Investors should conduct thorough research to identify areas where the rental market is less competitive and where FMRs might be closer to actual rents. #### Bottom Line For Section 8-focused investors, the recommendation is to **Skip** ZIP code 84003. The high price-to-FMR ratio and tight market conditions suggest that achieving positive cash flow will be challenging. Instead, investors might want to explore other ZIP codes with lower ratios and more relaxed market conditions. If investors decide to enter the market despite these challenges, they should focus on smaller units and consider diversifying their portfolio to include non-voucher rentals to balance out the financial pressures.

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.