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 | $1,140 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $326,841 | 0.4% | F |
| 3BR | $1,830 | $452,662 | 0.4% | F |
| 4BR | $2,210 | $501,367 | 0.44% | F |
| 5BR | $2,564 | $579,974 | 0.44% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for Section 8 investments in ZIP code 84057, located in Orem, UT, are significant and must be carefully considered. Tenant turnover is a critical issue, with market rents at $1,576 compared to the Federal Market Rent (FMR) of $1,220 for FY 2024. This discrepancy can lead to higher turnover rates as tenants seek to maximize their voucher benefits, potentially resulting in frequent property changes and increased administrative costs.
Vacancy exposure is another concern, though the days on market (DOM) data is currently unavailable. Given the typical home value of $472,899 and a median income of $82,780, there is a notable gap between housing costs and residents' earnings. This imbalance suggests that landlords might face extended periods of vacancy, especially if they are not competitive with voucher-assisted rental rates.
Deferred maintenance is also a risk factor. With homes valued around $472,899, maintaining properties to meet Section 8 standards can be costly. Landlords must ensure that their investments are well-maintained to avoid penalties and maintain compliance with the program's requirements. The median income figure indicates that many residents might struggle to afford substantial repairs out-of-pocket, further highlighting the need for landlords to be proactive about upkeep.
Despite these risks, the high renter share of 37.0% in ZIP 84057 is a positive indicator. A large proportion of renters typically translates into greater demand for housing vouchers, which can provide a steady stream of tenants. This demand can help mitigate some of the risks associated with vacancy and turnover, making it easier to find and retain qualified voucher holders.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.