Location: Duchesne County, UT | Metro: Duchesne County, UT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 84007 presents an interesting scenario when comparing federally determined Fair Market Rents (FMRs) to market rents. For a two-bedroom apartment, the annualized FMR for FY 2026 is set at $1,130 per month, while the Census ACS indicates a market rent of $1,100 per month.
To calculate the gross yield, we first need to consider the monthly rent figures. The annualized FMR of $1,130 translates into an annual rental income of $13,560. Similarly, the market rent of $1,100 amounts to an annual rental income of $13,200. Given that the median home value is not available for ZIP 84007, we can infer the potential gross yields based on typical assumptions for rental properties in similar markets.
In the context of Section 8, the gross yield is typically lower than what might be achieved through market rents due to the fixed nature of the federal rent subsidies. Assuming a median home value that is typical for a property that could generate these rental incomes, let's consider a hypothetical median home value of $250,000 for illustrative purposes. This would imply a gross yield of approximately 5.4% for the FMR scenario ($13,560 / $250,000 * 100), and a slightly lower gross yield of about 5.3% for the market rent scenario ($13,200 / $250,000 * 100).
However, the lack of a median home value makes it difficult to provide a precise gross yield calculation. The 41.8% renter density suggests that there is a significant portion of the population in ZIP 84007 who rely on rental housing, which could indicate a strong demand for both market and subsidized rentals. The N/A-day Days on Market (DOM) implies that the data for how quickly homes are rented out is also unavailable, making it challenging to assess the speed at which units are occupied and generating income.
Given the data constraints, the FMR scenario is more likely to represent the actual income for landlords participating in Section 8, as the federal subsidy caps the rent at a fixed rate. While the market rent scenario might seem more attractive at first glance, the reality of Section 8 participation often means adhering to the FMR guidelines. Therefore, investors should focus on the FMR-based gross yield of 5.4%, understanding that this figure is contingent upon the actual median home value in the area.
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.