Section 8 Fair Market Rent (FMR) for ZIP 84041 - 2027

Investment Score for ZIP 84041

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	$1,160
1 Bedroom	$1,230
2 Bedrooms	$1,560
3 Bedrooms	$2,090
4 Bedrooms	$2,500
5 Bedrooms	$2,900
6 Bedrooms	$3,248
7 Bedrooms	$3,508
8 Bedrooms	$3,683

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	$1,560	$384,272	0.41%	F
3BR	$2,090	$439,539	0.48%	F
4BR	$2,500	$482,013	0.52%	F
5BR	$2,900	$612,221	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 84041 (Layton, UT) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Layton, UT (ZIP 84041), as of 2026, is set at $1590 for a two-bedroom unit. This represents 21.3% of the median household income in the area, which stands at $89,604. The FMRs for other bedroom sizes are as follows: $1190 for 0BR, $1260 for 1BR, $2130 for 3BR, and $2570 for 4BR units. However, the actual rental market in Layton is significantly higher. According to Zillow, the median price for a two-bedroom unit is $383,130, which translates to a price-to-FMR ratio of 20.1x. This means that the actual rent prices are much higher than what the FMR suggests, creating a significant gap between the voucher amount and the market rate. For instance, a two-bedroom unit would cost approximately $3192.75 per month based on the median price, which is far above the $1590 FMR. Consequently, voucher holders face substantial constraints in finding affordable housing within their budget. #### Affordability & Renter Profile Layton has a population of 55,180, with 33.6% of residents being renters. This indicates a relatively large rental market, but the high price-to-FMR ratio suggests that it is a tight market where affordability is a significant concern. Given the median household income of $89,604, the majority of renters can afford the higher market rates, but those relying on Section 8 vouchers will struggle to find suitable housing. The occupancy rate of 94.6% further underscores the tightness of the market, indicating that there is little spare capacity for new renters. This high occupancy rate also implies that landlords have a strong bargaining position, which could contribute to the elevated rental prices. #### Investor Angle From an investor perspective, the ZIP code 84041 presents a challenging scenario when focusing solely on Section 8 vouchers. With the FMR for a two-bedroom unit at $1590, investors would need to ensure that their properties are priced at or below this level to attract voucher holders. However, given the median rental price of $3192.75 for a two-bedroom unit, operating at FMR levels would likely result in negative cash flow unless the property is highly efficient and well-managed. To assess the investment grade, we must consider the potential for positive cash flow. If an investor were to purchase a two-bedroom unit at the median price of $383,130, they would be paying approximately $3192.75 per month in mortgage payments (assuming a 30-year fixed-rate mortgage at 4.5%). Even if all operating costs were covered by the FMR, the cash flow would still be negative due to the disparity between the FMR and the actual mortgage payment. #### Specific Actionable Insights 1. **Focus on Lower-Budget Units**: Investors should focus on acquiring smaller units such as one-bedroom or studio apartments, which have lower FMRs ($1260 and $1190 respectively). These units are more likely to generate positive cash flow at FMR levels, especially if the investor can negotiate a lower purchase price or secure financing at favorable terms. 2. **Consider Mixed-Income Developments**: Given the high median household income and the fact that only 21.3% of median income is required for a two-bedroom unit, mixed-income developments might be a better strategy. By offering a mix of Section 8 units and market-rate units, investors can balance the financial risks and rewards. For example, a development could include a few units priced at FMR levels and others priced closer to the median market rate, ensuring overall profitability. 3. **Utilize Tax Credits and Incentives**: Layton’s tight rental market and high occupancy rate make it an attractive location for tax credits and incentives aimed at affordable housing. Investors should explore these opportunities to offset some of the financial challenges associated with operating at FMR levels. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 84041 (Layton, UT) is to **Skip** this market. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow while adhering to FMR guidelines. Instead, investors might want to look into areas with a more favorable price-to-FMR ratio or consider alternative investment strategies that leverage both Section 8 vouchers and market-rate rentals.

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.