Location: Uintah County, UT | Metro: Duchesne 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 | $800 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,380 | $334,601 | 0.41% | F |
| 4BR | $1,560 | $391,908 | 0.4% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 84066 reveals an interesting dynamic between federally set Fair Market Rents (FMRs) and actual market rents. For a two-bedroom unit, the annualized FMR stands at $1,120, while the Census ACS reports a market rent of $991 per month. To calculate the implied gross yield, we need to look at these figures relative to the median home value of $371,802.
Using the FMR figure, the annual rental income would be $13,440. This results in an implied gross yield of approximately 3.61%. On the other hand, using the market rent figure, the annual rental income would be $11,892, leading to an implied gross yield of about 3.19%. The difference in yields highlights the potential gap between what the government deems as fair market rent and what the market actually dictates.
The 23.8% renter density suggests that a significant portion of the population in ZIP 84066 owns their homes, which could influence the demand for rental properties, including those participating in the Section 8 program. Given the lack of data on days on market (DOM), it's challenging to predict how quickly a property might be leased under the Section 8 program versus the open market. However, the higher gross yield based on the FMR indicates that landlords might find participating in the Section 8 program more financially beneficial, assuming they can manage the administrative complexities associated with the program.
While the FMR scenario offers a slightly better gross yield, the reality of rental income may lean more towards the market rent figure, especially if there is stiff competition among landlords for tenants. The actual performance will depend on the landlord's ability to secure Section 8 tenants and manage the property effectively. It's important to note that the cap rate calculation here does not account for operating expenses, vacancy rates, or other factors that would impact the net operating income (NOI).
In conclusion, the gross yield based on the FMR is 3.61%, while the gross yield based on the market rent is 3.19%. Landlords should consider these figures as part of their broader investment strategy, taking into account the unique characteristics of ZIP 84066 and the potential benefits and drawbacks of the Section 8 program.
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.