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 | $1,180 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,890 | $625,234 | 0.3% | F |
| 4BR | $2,280 | $766,848 | 0.3% | F |
| 5BR | $2,645 | $925,529 | 0.29% | F |
U.S. Census Bureau data (2024)
The ZIP code 84042, with a population of 11,725, has a relatively low percentage of renters at 19.5%. This indicates that the area is primarily dominated by homeowners rather than renters, which suggests that the demand for rental properties using Section 8 vouchers might be lower compared to areas with a higher proportion of renters.
The median household income in this ZIP code is $121,275, which is notably high. The market rent for the area stands at $1,563, representing approximately 13% of the median income when considering a monthly basis. This ratio is favorable for potential tenants, as it means they can afford higher rents without excessive financial strain.
Comparing the market rent to the Fair Market Rent (FMR) set by HUD for FY 2024, which is $1,430, the actual market rent in ZIP 84042 is slightly above the FMR. Landlords should be aware that while the FMR provides a benchmark, the actual market conditions may require adjusting their expectations slightly upward.
A landlord in ZIP 84042 can expect a tenant profile that includes individuals who are likely to be financially stable, given the high median income level. However, those seeking to utilize Section 8 vouchers will still need to ensure that their income aligns with the program's eligibility criteria. The expected tenants would typically be working professionals or families who value the amenities and location offered by this ZIP code but may prefer or need rental options over homeownership.
In summary, ZIP 84042 is not a renter-heavy area with deep voucher demand; instead, it is an area where homeownership is prevalent. The market rent at $1,563 is manageable for most residents given the median income, making it a desirable location for both landlords and tenants. However, landlords should prepare for a tenant base that is more likely to consist of individuals with stable incomes rather than those solely relying on Section 8 vouchers.
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.