Section 8 Fair Market Rent (FMR) for ZIP 84062 - 2027

Investment Score for ZIP 84062

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	$1,280
1 Bedroom	$1,290
2 Bedrooms	$1,470
3 Bedrooms	$2,040
4 Bedrooms	$2,460
5 Bedrooms	$2,854
6 Bedrooms	$3,196
7 Bedrooms	$3,452
8 Bedrooms	$3,625

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
2BR	$1,470	$427,657	0.34%	F
3BR	$2,040	$484,939	0.42%	F
4BR	$2,460	$600,882	0.41%	F
5BR	$2,854	$740,981	0.39%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 84062 (Pleasant Grove, UT) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 84062 in Pleasant Grove, Utah County, indicate that the cost of renting a 2BR unit is set at $1580 per month for the year 2026. However, the actual rental market in this area is significantly higher, with the Zillow median price for a 2BR home being $426,882. This translates into a price-to-FMR ratio of 22.5 times, suggesting that the actual market rents far exceed the FMR. For Section 8 voucher holders, this presents a significant challenge. The maximum rent they can pay under the voucher program is capped at the FMR, which means they would struggle to find 2BR units within their budget. Given that the FMR represents only 17.9% of the median household income ($105,649), it is clear that the voucher amount is relatively low compared to the overall economic status of the area. This constraint makes it difficult for voucher holders to secure housing that matches their needs, especially if they require larger units like 3BR or 4BR homes, which have FMRs of $2200 and $2650 respectively. #### Affordability & Renter Profile ZIP code 84062 has a population of 47,813, with 29.8% of residents being renters. This indicates a substantial rental market, but the occupancy rate of 96.2% suggests that the market is quite tight. With limited availability and high demand, the competition for rental properties is likely intense. Given the median household income of $105,649, the majority of residents can afford higher rents. However, the 29.8% of renters who rely on lower incomes or assistance programs face significant challenges in finding affordable housing. The high price-to-FMR ratio further exacerbates this issue, making it even harder for those who depend on vouchers to secure suitable accommodation. #### Investor Angle From an investor’s perspective, the ZIP code 84062 presents a mixed picture. The FMRs are set at levels that are much lower than the actual market rents, which could make it challenging to achieve positive cash flow when relying solely on FMR-based rents. For instance, a 2BR unit with an FMR of $1580 would need to be rented out at this price to comply with Section 8 requirements, but the actual market value is much higher. To determine the investment grade, we must consider the potential for cash flow and the likelihood of securing tenants. While the market is tight, with an occupancy rate of 96.2%, the high price-to-FMR ratio suggests that landlords might struggle to attract tenants willing to accept the FMR rates. Therefore, the investment grade for this ZIP code would be moderate to low, particularly for properties targeting Section 8 voucher holders. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR or 1BR apartments, where the FMR is $1360 and $1370 respectively. These units are more likely to be rented by Section 8 voucher holders due to the lower rent caps. 2. **Consider Non-Section 8 Tenants**: Investors might want to consider non-Section 8 tenants to achieve better cash flow. The median household income of $105,649 indicates that there is a significant portion of the population capable of paying higher rents. Therefore, setting rents above the FMR but still below the market average could attract these higher-income tenants while ensuring profitability. 3. **Location-Specific Strategies**: Since the market is tight, investors should look for properties in less competitive submarkets within ZIP 84062. Areas with lower property values or less desirable locations might offer better opportunities for achieving positive cash flow while still complying with FMR guidelines. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 84062 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow. Instead, investors should consider other ZIP codes with more favorable ratios or a greater supply of rental properties. If investors decide to proceed, they should focus on smaller units and potentially explore non-Section 8 tenant options to maximize profitability.

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.