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 | $1,480 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,840 |
| 5 Bedrooms | $3,294 |
| 6 Bedrooms | $3,689 |
| 7 Bedrooms | $3,984 |
| 8 Bedrooms | $4,183 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,700 | $462,260 | 0.37% | F |
| 3BR | $2,350 | $491,899 | 0.48% | F |
| 4BR | $2,840 | $612,880 | 0.46% | F |
| 5BR | $3,294 | $762,598 | 0.43% | F |
U.S. Census Bureau data (2024)
Lehi, specifically the 84043 ZIP code, is the dynamic commercial and residential heart of "Silicon Slopes," a region defined by rapid tech growth and suburban expansion. This area is characterized by master-planned communities and a high concentration of technology firms. While many large employers call this home, Adobe stands out as a major institution anchoring the local economy. The neighborhood features a mix of new residential construction and preserved historical elements near the interstate, offering a family-friendly atmosphere that continues to draw new residents.
From a numerical perspective, the HUD Fair Market Rent (FMR) for a 2-bedroom unit is listed as $1,840 (FY2026), which lags significantly behind the current market rent of $2,216, creating a gap of $376. For context, the HUD SAFMR (FY2024) sits at $1,670. Property values remain elevated, with a median home value of $573,587 and a median 2BR sale price of $460,495. Homes are moving moderately fast, with a median days on market of 51 days. Because the FMR is roughly 17% below market rates, landlords accepting vouchers would need to absorb this discount to access the program, impacting immediate cash flow potential.
The tenant pool here is relatively affluent, with a median household income of $129,852, which is well above typical thresholds for voucher assistance. With a renter share of only 24.8%, the majority of residents are homeowners. Demand is heavily influenced by the area’s amenities, including top-rated schools in the Alpine School District and convenient access to I-15. These factors generally attract market-rate tenants who can afford the higher Zillow rents, meaning the voucher-holding demographic represents a smaller, niche segment of the local population.
The Section 8 verdict for Lehi 84043 leans toward appreciation and stability rather than immediate cash flow. The substantial gap between the $2,216 market rent and the $1,840 FMR makes it difficult to achieve maximum yields with vouchers compared to market tenants. However, the high median income and strong employment base suggest that any vacancy is likely to be filled quickly by a qualified renter. Investors should view Section 8 here as a risk mitigation tool rather than a primary income strategy, focusing on the area's long-term property value growth and the security of a tenant base employed by the robust local tech sector.
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.