Section 8 Fair Market Rent (FMR) for ZIP 84045 - 2027

Investment Score for ZIP 84045

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	$1,720
1 Bedroom	$1,730
2 Bedrooms	$1,980
3 Bedrooms	$2,740
4 Bedrooms	$3,310
5 Bedrooms	$3,840
6 Bedrooms	$4,301
7 Bedrooms	$4,645
8 Bedrooms	$4,877

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
3BR	$2,740	$440,858	0.62%	D
4BR	$3,310	$603,968	0.55%	F
5BR	$3,840	$702,016	0.55%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 84045 (Sandy, UT) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 84045, as provided by HUD for 2026, range from $1820 for a zero-bedroom unit to $3540 for a four-bedroom unit. However, without recent Zillow data, it is challenging to directly compare these figures to actual market rents. Typically, FMR is set to ensure that housing costs do not exceed 30% of a household’s income. In this case, the FMR for a two-bedroom unit is $2110, which represents 19.4% of the median household income of $130,331. This suggests that the FMR is well below what might be considered affordable based on local incomes, potentially indicating that voucher holders face significant constraints in finding suitable housing within their budget. #### Affordability & Renter Profile ZIP code 84045 has a relatively low renter percentage of 14.8%, indicating that the majority of residents are homeowners. The occupancy rate of 95.3% suggests a robust demand for housing, but given the low renter percentage, the rental market may be tighter compared to areas with higher renter populations. The median household income of $130,331 implies that renters in this area likely have above-average incomes, making them less reliant on government assistance programs like Section 8 vouchers. Therefore, the rental market may cater more towards middle to upper-income individuals who can afford higher rents. #### Investor Angle From an investor perspective, the ZIP code 84045 presents a mixed picture. Given the high median household income and the low renter percentage, the rental market is likely to be competitive and may not offer the same level of cash flow as areas with higher renter populations. However, the FMRs provide a baseline for rental pricing that could be used to gauge potential returns. For instance, a two-bedroom unit at $2110 would generate annual rent of $25,320, which is a significant amount considering the local economic conditions. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical operating expenses and mortgage payments. Assuming a conservative estimate of 50% of rent covering operating expenses and another 30% covering mortgage payments, a two-bedroom unit would have about $1055 left over annually for profit, assuming no vacancies. This scenario would suggest that while the market is tight, it can still be profitable for investors willing to manage units efficiently. The investment grade for this ZIP code would be moderate to high due to the strong local economy and high median household income, which supports stable rental demand. However, the limited number of renters and the high competition for rental properties could pose challenges. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given the high median household income, larger units (3BR and 4BR) may attract more renters willing to pay closer to the FMR. For example, a three-bedroom unit at $2930 would generate annual rent of $35,160, providing a higher potential return. 2. **Consider Homeowner Conversion**: With only 14.8% of residents being renters, there may be opportunities to convert some homeowners into renters by offering attractive lease terms and amenities. This could help fill the gap in the rental market and increase the pool of potential tenants. 3. **Utilize Vacant Properties**: Given the high occupancy rate, any vacant properties should be marketed aggressively to capture the limited rental demand. Investors should focus on maintaining a high occupancy rate to maximize cash flow. #### Bottom Line For Section 8-focused investors, the ZIP code 84045 presents a challenging environment due to the tight rental market and the relatively low proportion of renters. The high median household income suggests that many residents can afford market-rate rents, reducing the reliance on Section 8 vouchers. Therefore, the recommendation for investors targeting Section 8 vouchers would be to **Skip** this ZIP code unless they can find ways to leverage the higher FMRs for larger units and effectively manage a competitive rental market. However, for general investors looking to capitalize on the strong local economy and high median household income, the ZIP code 84045 could be a **Hold** or even a **Buy** opportunity, particularly for larger units that are more likely to attract higher-paying tenants.

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.