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 | $1,220 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $293,767 | 0.48% | F |
| 3BR | $1,940 | $462,097 | 0.42% | F |
| 4BR | $2,340 | $534,179 | 0.44% | F |
| 5BR | $2,714 | $660,553 | 0.41% | F |
U.S. Census Bureau data (2024)
The ZIP code 84058, located in Orem, Utah, presents a market in motion characterized by the interplay between federal guidelines and local rental prices. The Fair Market Rent (FMR) for the area, set at $1270 for fiscal year 2024, serves as a benchmark for affordable housing. However, the actual market rent, known as the Zillow Observed Rental Index (ZORI), stands higher at $1,454. This discrepancy suggests that local demand may be slightly outpacing supply, as landlords can charge above the FMR without significantly impacting occupancy rates.
The low price-cut share of 0.2% indicates that most properties are being rented at their initial asking price, further supporting the notion that supply is closely matching or slightly underperforming against demand. While the days on market (DOM) data is not available, the median home value of $486,010 provides insight into the overall cost of living and investment potential in the area. This figure is indicative of a stable residential market, which could attract both buyers and investors looking for solid returns.
A significant 57.9% of residents in Orem are renters, a high percentage that points to persistent long-term housing pressure. This dynamic implies that a substantial portion of the population is likely to remain in the rental market, ensuring steady demand for rental properties. Landlords and small-portfolio investors should take note of these figures, as they suggest a robust rental market with potential for consistent income.
In summary, the dynamics in ZIP 84058 indicate a balanced yet active market, where rental prices are slightly higher than federal guidelines, suggesting a slight edge towards demand over supply. The high renter share underscores the importance of rental properties in the area, providing a foundation for long-term housing stability and investment opportunities.
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.