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 | $1,210 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,450 |
| 5 Bedrooms | $2,842 |
| 6 Bedrooms | $3,183 |
| 7 Bedrooms | $3,438 |
| 8 Bedrooms | $3,610 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,350 | $533,618 | 0.25% | F |
| 2BR | $1,620 | $588,690 | 0.28% | F |
| 3BR | $2,150 | $722,041 | 0.3% | F |
| 4BR | $2,450 | $852,175 | 0.29% | F |
| 5BR | $2,842 | $1,074,397 | 0.26% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 84105 does not align favorably for landlords. The Fair Market Rent (FMR) set at $1600 for the fiscal year 2024 is significantly lower than the actual market rent, which stands at $1,977 according to ZORI. This discrepancy means that landlords may struggle to cover costs and make a profit based on the government-set rates.
Acquisition in this area is relatively affordable. With a median home value of $720,707, the cost of entry into the real estate market is moderate. Additionally, the 21-day Days on Market (DOM) indicates a brisk sales pace, suggesting that homes are selling quickly once listed. The low 0.3% price-cut share further supports the notion that pricing is generally competitive and accurate, making it easier for new investors to enter without facing significant price adjustments.
Tenant demand is robust in ZIP 84105. The area has a population of 23,491, with 40.7% of residents being renters. This high percentage of renters suggests a strong base of potential tenants, providing landlords with a good pool of candidates to fill their properties.
In summary, while the rent math presents a challenge due to the disparity between FMR and market rent, the acquisition costs are reasonable, and there is a healthy demand for rental properties. Landlords should be prepared to operate outside the FMR guidelines to ensure profitability but can expect a steady stream of interested tenants.
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.