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 | $1,240 |
| 1 Bedroom | $1,400 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,400 | $303,040 | 0.46% | F |
| 2BR | $1,670 | $433,089 | 0.39% | F |
| 3BR | $2,220 | $533,539 | 0.42% | F |
| 4BR | $2,520 | $625,187 | 0.4% | F |
U.S. Census Bureau data (2024)
Salt Lake City, UT's ZIP code 84111 is characterized by a population of 12,782 residents, where 78.4% are renters. This indicates a neighborhood with a significant rental market presence. The median household income in the area stands at $52,952, while the median home value is notably higher at $448,140. These figures suggest an environment where homeownership is somewhat less prevalent, likely due to the high cost of homes relative to the median income.
The economic landscape of the rental sector in 84111 is further illuminated by comparing the Fair Market Rent (FMR) to the actual market rent. For fiscal year 2024, the FMR is set at $1,710, whereas the market rent, as measured by the Zillow Observed Rent Index (ZORI), is slightly higher at $1,752. This modest gap between FMR and market rent reflects a competitive rental market, but also one where Section 8 vouchers can still provide substantial support to tenants.
Given these parameters, ZIP 84111 could be well-suited for both hands-off voucher operators and hands-on value-add buyers. The high percentage of renters and the alignment of FMR with market rents make it attractive for those who prefer a passive investment strategy, relying on government subsidies to ensure steady cash flows. On the other hand, the potential for higher market rents above the FMR offers opportunities for hands-on investors looking to enhance property values through improvements and attract non-voucher tenants willing to pay more. The combination of a dense rental market and a robust housing value base creates a scenario where either approach could prove profitable, depending on the investor's goals and risk tolerance.
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.