Location: Provo-Orem-Lehi, UT | Metro: Provo-Orem-Lehi, UT 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 | $1,500 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,870 |
| 5 Bedrooms | $3,329 |
| 6 Bedrooms | $3,728 |
| 7 Bedrooms | $4,026 |
| 8 Bedrooms | $4,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 4BR | $2,870 | $1,125,583 | 0.25% | F |
| 5BR | $3,329 | $1,369,978 | 0.24% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 84004 within the Provo-Orem-Lehi, UT MSA metro reveals several key points for landlords and small-portfolio investors. First, examining the rent math, the Federal Market Rent (FMR) for the fiscal year 2024 is set at $1670. This is significantly lower than the market rent of $3,501 reported by the Census ACS. The disparity between these figures means that landlords relying solely on FMR will not cover their costs effectively, leading to potential financial losses.
Regarding acquisition affordability, the median home value in ZIP 84004 stands at $1,170,982. This high figure suggests that purchasing properties in this area will be costly, especially for those with limited capital. The lack of available data on days on market (DOM) and the low price-cut share of 0.2% indicate that homes are likely selling quickly without significant price reductions, further challenging new acquisitions.
On the tenant demand front, the ZIP code has a total population of 10,427, with 11.2% of residents being renters. This relatively small renter base implies limited tenant demand, which could make it difficult to find enough qualified applicants to fill rental units. Additionally, the small percentage of renters compared to homeowners indicates a less active rental market.
In summary, ZIP 84004 presents challenges for landlords and small-portfolio investors. The rent math does not favor those who must rely on the FMR, as it falls well below the actual market rent. Acquiring properties is also expensive due to the high median home value and quick sales without price cuts. Lastly, the limited tenant demand, represented by a small renter population share, poses additional risks. These factors collectively suggest that investing in this ZIP code requires careful consideration and a robust strategy to overcome the financial and market challenges.
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.