Section 8 Fair Market Rent (FMR) for ZIP 84074 - 2027

Investment Score for ZIP 84074

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	$920
1 Bedroom	$920
2 Bedrooms	$1,210
3 Bedrooms	$1,600
4 Bedrooms	$2,020
5 Bedrooms	$2,343
6 Bedrooms	$2,624
7 Bedrooms	$2,834
8 Bedrooms	$2,976

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,210	$329,376	0.37%	F
3BR	$1,600	$434,893	0.37%	F
4BR	$2,020	$461,167	0.44%	F
5BR	$2,343	$530,807	0.44%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 84074 (Tooele, UT) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 84074 is set by HUD for 2026 as follows: - 0BR: $960 - 1BR: $1010 - 2BR: $1320 (14.6% of median income) - 3BR: $1770 - 4BR: $2210 These figures represent the maximum amount that a Section 8 voucher holder can be reimbursed for rent. However, the actual rental market in Tooele, UT, significantly exceeds these rates. For instance, the Zillow median price for a 2BR property is $330,449, which translates to a monthly mortgage payment well above the FMR. The price-to-FMR ratio for a 2BR unit is 20.9x, indicating that the actual rental cost is likely much higher than the FMR. This means that voucher holders face significant constraints in finding affordable housing within their budget. #### Affordability & Renter Profile ZIP code 84074 has a population of 59,706, with 17.3% of residents being renters. The occupancy rate is high at 97.4%, suggesting that the rental market is tight and there is little excess supply. Given the median household income of $108,341, most residents can afford the higher rents, but for those relying on Section 8 vouchers, the situation is challenging. The FMR for a 2BR unit is only $1320, which is a mere 14.6% of the median income. This indicates that while the overall market is relatively affluent, the subset of residents who rely on Section 8 assistance faces a stark affordability gap. #### Investor Angle From an investor perspective, the ZIP code 84074 offers mixed opportunities. While the median home values are high, the rental market is also robust. However, the FMRs are set very low compared to actual market rents, making it difficult to achieve positive cash flow solely based on FMR reimbursement rates. For example, a 2BR unit priced at $330,449 would have a monthly mortgage payment around $1,500 to $1,600, depending on interest rates and down payments. This is already above the FMR of $1320, meaning that landlords would need to cover the difference out-of-pocket if they want to participate in the Section 8 program. Given the tight rental market and the high price-to-FMR ratio, the investment grade for properties in this ZIP code is moderate to low for Section 8-focused investors. The primary challenge lies in the limited number of units that can be rented at or below FMR levels, coupled with the high cost of acquiring such properties. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on 0BR and 1BR units, where the FMR is lower ($960 and $1010 respectively). These units are more likely to be rented at or near FMR levels, allowing for better cash flow management. Additionally, smaller units tend to have lower acquisition costs, which can help mitigate the financial strain of operating at FMR rates. 2. **Explore Non-Section 8 Rental Options**: Given the high price-to-FMR ratio, it might be more financially viable to target non-Section 8 tenants who can afford higher rents. The median income in the area suggests that there is a strong demand for higher-priced rentals, which could provide better returns and cash flow stability. 3. **Consider Mixed-Income Developments**: Investors could explore developing mixed-income properties that cater to both Section 8 voucher holders and higher-income tenants. By including a mix of units with varying sizes and amenities, landlords can balance the lower FMR rents with higher market rents, thereby achieving a more sustainable cash flow. #### Bottom Line For Section 8-focused investors, the ZIP code 84074 presents a challenging environment due to the high cost of housing and the low FMR rates. The recommendation is to **Skip** this market unless you can find extremely affordable properties or are willing to operate at a loss to participate in the Section 8 program. Instead, investors might want to look into areas with a higher percentage of renters or lower median home values where the FMR more closely aligns with actual market rents. If you still wish to invest in this area, focus on smaller units or develop mixed-income properties to balance the financial impact.

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.