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 | $1,140 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,320 | $345,355 | 0.38% | F |
| 2BR | $1,580 | $414,569 | 0.38% | F |
| 3BR | $2,100 | $479,008 | 0.44% | F |
| 4BR | $2,400 | $543,961 | 0.44% | F |
| 5BR | $2,784 | $597,509 | 0.47% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP 84115 (South Salt Lake, UT) for Section 8 must evaluate several key factors:
1) Does the Fair Market Rent (FMR) of $1370 cover the debt service on a property valued at $457,159?
No. The FMR of $1370 would not be sufficient to cover the debt service on a property priced at $457,159. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Given the high property value, the monthly rent collected under Section 8 would likely fall short of covering these expenses.
2) How does the market rent compare to the FMR?
The market rent, represented by the Zillow Rent Index (ZORI), stands at $1,495. This is slightly above the FMR of $1370, indicating that the rental market is somewhat favorable. However, this alone does not justify an investment if the property's value is too high relative to the FMR.
3) Is there enough demand, given that 62.6% of residents are renters and the days on market (DOM) average is 40 days?
Yes. With 62.6% of the population being renters and an average DOM of 40 days, there appears to be strong demand for rental properties in South Salt Lake. This suggests that rental units can be filled relatively quickly, reducing the risk of vacancy.
To summarize, the decision tree for investing in ZIP 84115 for Section 8 properties looks like this:
The primary gating factor is whether the FMR can support the financial obligations of owning a $457,159 property. In this case, it cannot, making the investment unwise without significant subsidies or a plan to increase the property's value over time to align with the FMR.
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.