Location: Salt Lake City, UT | Metro: Salt Lake City, UT HUD Metro FMR Area
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 | $1,440 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,560 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,930 | $471,726 | 0.41% | F |
| 3BR | $2,560 | $648,097 | 0.4% | F |
| 4BR | $2,910 | $772,534 | 0.38% | F |
| 5BR | $3,376 | $891,283 | 0.38% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in ZIP 84095 under the Section 8 program are significant. First, tenant turnover is a concern. The market rent stands at $1,772, while the Fair Market Rent (FMR) for fiscal year 2024 is set at $1,970. This discrepancy can lead to higher turnover rates as tenants may seek properties that offer closer alignment with the FMR, leaving landlords vulnerable to vacancy periods.
Vacancy exposure is another issue. With an average Days on Market (DOM) of 35 days, landlords face a substantial period where their property might remain unoccupied. During this time, they are still responsible for maintaining the property without receiving rental income, which can strain cash flow and reduce profitability.
Deferred maintenance poses a further challenge. Given the typical home value of $759,210 and the median household income of $126,968, many residents may struggle to keep up with costly repairs and improvements. Landlords must be prepared to address these issues promptly to avoid regulatory penalties and maintain the property's value.
However, these risks are tempered by the high concentration of renters in the area, with 25.0% of the population renting their homes. This high renter density typically correlates with increased demand for housing vouchers, which can provide a steady stream of qualified tenants willing to pay a portion of their income toward rent. The Section 8 program offers a safety net, ensuring that landlords receive consistent rental payments even if the market rent fluctuates.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.