Section 8 Fair Market Rent (FMR) for ZIP 84081 - 2027

Investment Score for ZIP 84081

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	$1,440
1 Bedroom	$1,620
2 Bedrooms	$1,940
3 Bedrooms	$2,570
4 Bedrooms	$2,930
5 Bedrooms	$3,399
6 Bedrooms	$3,807
7 Bedrooms	$4,112
8 Bedrooms	$4,318

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	$1,940	$411,958	0.47%	F
3BR	$2,570	$533,014	0.48%	F
4BR	$2,930	$561,922	0.52%	F
5BR	$3,399	$648,953	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 84081 (West Jordan, UT) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 84081 in West Jordan, Utah, is set by HUD for the year 2026. The FMRs for different bedroom sizes are as follows: - 0BR: $1450 - 1BR: $1680 - 2BR: $2010 (which represents 20.1% of the median household income) - 3BR: $2680 - 4BR: $3070 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, comparing these FMRs to actual rental prices in the area reveals significant discrepancies. For instance, the Zillow median price for a 2BR home in West Jordan is $418,571. This implies that the average monthly mortgage payment on such a property would be much higher than the FMR, considering typical mortgage rates and terms. Given the high cost of housing, Section 8 voucher holders face substantial constraints. They must find landlords willing to accept lower rents than the market rate, which can be challenging in a competitive market. Additionally, the occupancy rate of 97.4% suggests that there is little vacancy, making it even harder for voucher holders to secure affordable housing. #### Affordability & Renter Profile The population of West Jordan is 52,314, with 16.7% being renters. This relatively low percentage of renters indicates that homeownership is prevalent in the area, possibly due to the high median household income of $119,970. The median income is significantly higher than the national average, suggesting that residents have a strong financial capacity to afford higher housing costs. Despite the high median income, the affordability of housing remains a concern. The FMR for a 2BR unit is only $2010, which is a mere 20.1% of the median household income. This suggests that while the FMR is set at a level that is affordable for the average resident, it may not reflect the actual rental prices in the market. The high occupancy rate further supports the notion that the rental market is tight, with limited options available for those seeking affordable housing. #### Investor Angle From an investor perspective, the ZIP code 84081 presents both opportunities and challenges. The FMRs are set well below the market rent levels, which means that properties rented at FMR would likely not generate sufficient cash flow to cover operating expenses and provide a profit margin. For example, a 2BR unit renting at $2010 per month would need to compete with market rents that are much higher, given the Zillow median price. The price-to-FMR ratio of 17.4x highlights the disparity between the actual value of properties and the rent that can be charged under the Section 8 program. This ratio suggests that the market is highly inflated relative to the FMR, making it difficult for investors to achieve positive cash flow solely based on Section 8 rents. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that can be rented out at or slightly above the FMR. Given the high median income and tight rental market, targeting units that are priced closer to the FMR could attract voucher holders who struggle to find affordable housing. A 2BR unit renting at $2010 might still be attractive if it is in good condition and located in a desirable neighborhood. 2. **Consider Multi-Family Units**: Since the FMR for larger units (like 3BR and 4BR) is higher, multi-family units might offer better cash flow potential. A 3BR unit renting at $2680 or a 4BR unit renting at $3070 would be closer to the market rent levels, especially if the property is newly renovated or in a prime location. This strategy could help mitigate the risk of negative cash flow. 3. **Engage with Local Landlords**: Building relationships with local landlords who are already familiar with the Section 8 program can be beneficial. These landlords may have insights into how to navigate the local rental market and might be more willing to accept lower rents in exchange for guaranteed payments through the voucher program. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 84081 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow. While there are some actionable strategies, the overall market conditions suggest that the returns on investment would be marginal at best. Investors looking for more favorable conditions might want to consider other areas with lower ratios and more manageable rental markets. --- This analysis provides a detailed look into the rental dynamics, affordability concerns, and investment potential in ZIP code 84081, using the provided data points to draw conclusions and recommendations.

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.