Section 8 Fair Market Rent (FMR) for ZIP 84120 - 2027

Investment Score for ZIP 84120

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,160
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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,580	$415,258	0.38%	F
3BR	$2,100	$458,728	0.46%	F
4BR	$2,400	$472,355	0.51%	F
5BR	$2,784	$513,284	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 84120 (West Valley City, UT) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 84120 in West Valley City, Utah, indicate that the rental market is relatively expensive compared to the voucher program's budget. For instance, the 2026 FMR for a two-bedroom unit is $1710, which represents only 21.8% of the median household income of $94,306. This suggests that Section 8 voucher holders face significant constraints in finding affordable housing. The actual rent prices are likely higher than the FMR, given the high price-to-FMR ratio of 20.2x for a two-bedroom unit. This means that the median Zillow price for a two-bedroom property is $414,664, which is significantly above the FMR. #### Affordability & Renter Profile ZIP code 84120 has a population of 50,799, with 23.7% being renters. The occupancy rate stands at 96.7%, indicating a very tight rental market where most available units are occupied. Given the high median household income and the relatively low percentage of renters, it can be inferred that the majority of residents are homeowners. However, the renters who do occupy the area are likely to be individuals or families with lower incomes, making up a significant portion of the local economy. The high price-to-FMR ratio suggests that the market is not particularly affordable for renters, especially those relying on Section 8 vouchers. #### Investor Angle From an investor's perspective, the ZIP code 84120 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1710, but the median Zillow price of $414,664 implies that the typical rental price is much higher. If an investor aims to cater specifically to Section 8 voucher holders, they would need to ensure their properties are priced within the FMR guidelines. However, this would mean operating at a fraction of the potential rental rates in the area, which could impact cash flow positively if the investor can manage costs effectively. Given the high occupancy rate and the tight rental market, there is a strong demand for rental properties. However, the investment grade would depend on the ability to find properties that can be rented out at or below the FMR while still generating a reasonable return. The high price-to-FMR ratio indicates that the typical rental prices are well above the FMR, suggesting that properties priced within the FMR might struggle to compete with the market rates. #### Specific Actionable Insights 1. **Focus on Lower-Rent Properties**: Investors should focus on acquiring properties that can be rented out at or below the FMR. For example, a two-bedroom unit priced at $1710 per month would be ideal for Section 8 voucher holders. This strategy requires careful cost management to ensure profitability. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units like one-bedroom or even studio apartments might be more feasible for Section 8 voucher holders. The FMR for a one-bedroom unit is $1430, which is still a substantial amount but potentially more manageable for investors looking to cater to this demographic. 3. **Evaluate Property Costs**: With the median Zillow price for a two-bedroom unit at $414,664, investors must carefully evaluate the purchase price and renovation costs to ensure that the total investment aligns with the FMR. This may involve targeting older or less desirable properties that can be acquired at a lower cost. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 84120 is to **Hold**. While there is a strong demand for rental properties, the high price-to-FMR ratio makes it challenging to find properties that can be rented out at the FMR without incurring significant losses. Investors should carefully assess the local market dynamics and consider focusing on smaller units or areas with slightly lower FMRs to ensure cash-flow positivity. Additionally, thorough due diligence on property acquisition and renovation costs is essential to avoid overpaying for properties that cannot generate sufficient returns under the FMR guidelines.

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.