Location: Wasatch County, UT | Metro: Wasatch County, UT
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 | $1,920 |
| 1 Bedroom | $2,360 |
| 2 Bedrooms | $2,570 |
| 3 Bedrooms | $3,560 |
| 4 Bedrooms | $4,300 |
| 5 Bedrooms | $4,988 |
| 6 Bedrooms | $5,587 |
| 7 Bedrooms | $6,034 |
| 8 Bedrooms | $6,336 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,570 | $423,921 | 0.61% | D |
| 3BR | $3,560 | $768,252 | 0.46% | F |
| 4BR | $4,300 | $1,084,537 | 0.4% | F |
| 5BR | $4,988 | $1,399,468 | 0.36% | F |
U.S. Census Bureau data (2024)
To fit ZIP 84049 (Midway, UT, Wasatch County, UT metro) into a Section 8 portfolio strategy, it should be considered an appreciation play. This classification is based on the low price-cut share of 0.2%, indicating that homes in this area maintain their value without frequent discounts. The N/A-day DOM (Days on Market) suggests that properties in this ZIP code sell quickly, often before reaching the typical days on market metric, which is a strong indicator of demand.
The spread between the Fair Market Rent (FMR) and the market rent further supports this strategy. For fiscal year 2026, the FMR for the metro area is $2,620, while the market rent stands at $4,850. This significant difference means that landlords can potentially charge higher rents outside of Section 8, thereby maximizing their income when the property is not under the program. However, the primary focus here is on the long-term appreciation potential rather than immediate cash flow.
The median income of $151,343 in ZIP 84049 also points towards a robust local economy capable of supporting property values. With a median home value of $933,862, the area is clearly affluent and likely to see continued growth in property values over time. This makes it less suitable as a cash-flow anchor because the disparity between FMR and market rent could lead to lower returns if the property is exclusively rented through Section 8.
Moreover, the 17.2% renter share indicates a diverse housing market where a substantial portion of residents own their homes, reducing the risk of high vacancy rates and ensuring steady demand for both rentals and sales. This diversification is beneficial for investors looking to balance their portfolios with assets that offer both rental income and capital appreciation opportunities.
In summary, ZIP 84049 should be viewed as an appreciation play due to its low price-cut share, quick sales, and high median income, which all contribute to the long-term growth potential of property values in the area. While it offers opportunities for cash flow through market rents above the FMR, the primary benefit lies in the expected increase in property values over time, making it a solid choice for investors seeking to build wealth through real estate appreciation.
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.