Location: Salt Lake City, UT | Metro: Salt Lake City, UT HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,140 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,400 |
| 5 Bedrooms | $2,784 |
| 6 Bedrooms | $3,118 |
| 7 Bedrooms | $3,367 |
| 8 Bedrooms | $3,535 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 84112 reveals some interesting insights. The Fair Market Rent (FMR) for a two-bedroom apartment in this area, for fiscal year 2024, is set at $1360 per month. This translates into an annualized rental income of $16,320. On the other hand, the Census ACS indicates a market rent of $1,208 per month, equating to an annual income of $14,496.
To derive the gross yield, we need to consider the median home value, which is unfortunately not available for ZIP 84112. However, assuming a hypothetical median home value for the sake of illustration, let's use a round figure of $300,000. With this assumption, the gross yield based on the FMR would be approximately 5.44%, while the gross yield based on the market rent would be around 4.83%. These yields represent the ratio of annual rental income to the property's value.
Given that the renter density in ZIP 84112 is at 100.0%, it suggests a strong demand for rental properties, which supports the viability of using the FMR as a basis for investment decisions. The Days on Market (DOM) being N/A implies either a very competitive rental market or a lack of comprehensive data on how quickly rentals are occupied, but the high renter density points towards a robust rental environment.
In conclusion, while the FMR-based gross yield of 5.44% appears more favorable than the market rent-based yield of 4.83%, the reality of the situation depends heavily on the specifics of the property and the local rental market dynamics. Investors should take into account the high renter density and the potential for rapid occupancy when evaluating these figures. The FMR scenario provides a higher return but relies on government subsidy rates, whereas the market rent scenario reflects the current tenant-driven market conditions.
Note: Median home value data was not available for ZIP 84112, leading to the use of a hypothetical figure for calculation purposes. Actual yields will vary depending on the true property values in the area.
Data Sources: FMR data from HUD (2027). 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.