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 | $1,500 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $2,010 |
| 3 Bedrooms | $2,670 |
| 4 Bedrooms | $3,040 |
| 5 Bedrooms | $3,526 |
| 6 Bedrooms | $3,949 |
| 7 Bedrooms | $4,265 |
| 8 Bedrooms | $4,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,010 | $394,924 | 0.51% | F |
| 3BR | $2,670 | $492,696 | 0.54% | F |
| 4BR | $3,040 | $639,067 | 0.48% | F |
| 5BR | $3,526 | $741,999 | 0.48% | F |
U.S. Census Bureau data (2024)
Herriman (ZIP 84096) is a rapidly expanding suburban city located in southwestern Salt Lake County. Characterized by master-planned communities and new construction, the area has transformed from a quiet outpost into one of the region’s fastest-growing residential hubs. This growth is anchored by the significant Herriman Town Center development, which acts as a focal point for retail and civic activity, alongside the presence of major local employers like the Jordan School District, which serves as a stable economic base for the area [5].
Financially, the ZIP code presents a distinct spread between government subsidies and private market rates. The FY2026 HUD Fair Market Rent for a 2-bedroom unit is set at $2,120, while current market rent (Zillow ZORI) sits at $1,890, creating a negative gap of $230. This means the local market cap is well below the allowable voucher limit. The median home value stands at $604,123, with a median 2BR sale price of $395,407. However, movement is slower than peak market norms, with properties sitting on the market for a median of 81 days.
Despite a renter share of just 21.4%, the tenant pool is bolstered by a robust median household income of $122,881, suggesting that even working-class tenants here earn significantly more than in other markets. This demographic is supported by highly-rated local schools and a "close-knit" community feel that retains families [6]. While public transit is less dense than the urban core, the suburban infrastructure supports stable, long-term residency, which is ideal for landlords seeking to minimize turnover.
The Section 8 verdict for Herriman leans toward stability and appreciation rather than immediate cash-flow maximization. Because the 2BR FMR ($2,120) exceeds the going market rate ($1,890), voucher holders do not necessarily pay a premium here; instead, the FMR serves as a high ceiling that protects landlords while rents align with market realities. With high household incomes and new development, the strongest investor angle is banking on asset appreciation in a growth corridor, using the FMR buffer as a safety net against market dips rather than for immediate above-market yields.
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.