Section 8 Fair Market Rent (FMR) for ZIP 84005 - 2027

Investment Score for ZIP 84005

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	$1,540
1 Bedroom	$1,550
2 Bedrooms	$1,770
3 Bedrooms	$2,450
4 Bedrooms	$2,960
5 Bedrooms	$3,434
6 Bedrooms	$3,846
7 Bedrooms	$4,154
8 Bedrooms	$4,362

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
2BR	$1,770	$381,998	0.46%	F
3BR	$2,450	$460,004	0.53%	F
4BR	$2,960	$522,959	0.57%	F
5BR	$3,434	$580,915	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 84005 (Eagle Mountain, UT) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 84005 in Eagle Mountain, Utah, is set by HUD for 2026. The FMRs are as follows: - 0BR: $1670 - 1BR: $1680 - 2BR: $1940 (which is 20.5% of the median household income) - 3BR: $2700 - 4BR: $3250 These FMRs serve as the benchmark for determining the maximum rent that can be charged to tenants using Section 8 vouchers. However, comparing these figures to actual rents reveals significant disparities. For instance, the Zillow median price for a 2BR property in this area is $399,769, which translates into a monthly mortgage payment of approximately $1,740 if financed over 30 years at a typical interest rate of 5%. This already exceeds the 2BR FMR of $1940, indicating that landlords would need to charge more than the FMR to cover their costs, especially when factoring in maintenance, utilities, and other expenses. This creates a constraint for voucher holders, who may struggle to find units that fall within the FMR limits. The high price-to-FMR ratio of 17.2x suggests that the market rents are significantly higher than the FMRs, making it challenging for tenants with Section 8 vouchers to secure housing without substantial out-of-pocket expenses. #### Affordability & Renter Profile The population of Eagle Mountain is 52,530, with a median household income of $113,437. Only 15.5% of the population are renters, indicating a relatively low rental demand compared to the overall population. The occupancy rate stands at 98.4%, suggesting a tight rental market where most available units are quickly occupied. Given the high median household income and the low percentage of renters, the typical renter profile in this area likely includes individuals or families with higher incomes who can afford the elevated rental rates. This demographic may include young professionals, retirees, or families looking for affordable housing options in a desirable location. The tight market conditions imply that there is little oversupply, and any new rental units entering the market could potentially face competition for tenants. #### Investor Angle From an investor perspective, the ZIP code 84005 presents a mixed picture. While the Zillow median price for a 2BR property is $399,769, the FMR for a 2BR unit is $1940. To determine if this ZIP code is cash-flow positive at FMR, we must consider the total cost of ownership, including mortgage payments, property taxes, insurance, maintenance, and utilities. Assuming a 20% down payment on a $399,769 property, the principal amount would be $319,815. At a 5% interest rate, the monthly mortgage payment would be around $1,740. Adding property taxes (estimated at 1.1% of the property value), insurance, and maintenance costs, the total monthly expense could easily exceed $2,000. Given that the FMR for a 2BR unit is $1940, it is clear that the rental income at FMR would not cover the total cost of ownership, leading to a negative cash flow scenario. Moreover, the high price-to-FMR ratio of 17.2x indicates that the market rents are much higher than the FMRs. This means that properties rented at FMR levels would likely be underpriced relative to the market, potentially deterring investors who are looking for higher returns. In terms of investment grade, the ZIP code 84005 appears to be less favorable for Section 8-focused investors due to the high cost of ownership and the limited number of potential tenants who can use Section 8 vouchers effectively. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might want to focus on smaller units such as 0BR or 1BR apartments, which have FMRs of $1670 and $1680 respectively. These units are more likely to be rented at or near the FMR, reducing the risk of negative cash flow. Additionally, the lower FMR for these units means they are more affordable for voucher holders, increasing the likelihood of finding suitable tenants. 2. **Consider Alternative Financing Options**: Investors should explore alternative financing options that reduce the monthly mortgage burden. For example, obtaining a loan with a lower interest rate or a longer amortization period could help bring the monthly mortgage payment closer to the FMR levels. Another option could be to look for properties with lower purchase prices, possibly in slightly less desirable areas or with some needed renovations. 3. **Target Higher-Income Renters**: Given the high median household income and the tight rental market, targeting higher-income renters who do not rely solely on Section 8 vouchers could be a more viable strategy. This approach would allow landlords to charge market rents, which are significantly higher than the FMRs, thereby ensuring positive cash flow and better returns on investment. #### Bottom Line For Section 8-focused investors, the ZIP code 84005 (Eagle Mountain, UT) is not recommended for purchase. The high cost of ownership and the tight rental market make it difficult to achieve positive cash flow at FMR levels. Instead, investors should consider holding onto existing properties or skipping this market altogether in favor of areas with more favorable price-to-FMR ratios and a larger proportion of renters who can utilize Section 8 vouchers effectively. If investing in this ZIP code is still desired, focusing on smaller units and exploring alternative financing options could mitigate some of the risks associated with negative cash flow. However, the best strategy might be to target higher-income renters who can pay market rates, ensuring a more stable and profitable investment.

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.