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 | $253,915 | 0.52% | F |
| 2BR | $1,580 | $316,969 | 0.5% | F |
| 3BR | $2,100 | $511,414 | 0.41% | F |
| 4BR | $2,400 | $570,784 | 0.42% | F |
| 5BR | $2,784 | $653,474 | 0.43% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate picture for ZIP 84123, Taylorsville, UT, can be analyzed using the Fair Market Rent (FMR) and Zillow's Observed Rent Index (ZORI) for a two-bedroom apartment. The annualized FMR for a 2BR unit is $1590, while the market rent is $1,418. With a median home value of $537,841, we can calculate the implied gross yield for both scenarios.
Using the FMR, the implied gross yield is calculated as follows:
The higher gross yield based on FMR is 3.55%, compared to the lower gross yield based on ZORI at 3.16%. Given the 40.5% renter density and the 16-day days on market (DOM), the ZORI gross yield scenario is more realistic. The 16-day DOM indicates that rental units are being occupied relatively quickly, suggesting that market rents are closer to what landlords can expect to receive.
The FMR represents the maximum amount that the government will pay for a rental unit, which is typically higher than the actual market rate. Therefore, relying solely on FMR to determine the gross yield would overestimate the potential income for landlords and small-portfolio investors. The ZORI gross yield provides a more accurate representation of the rental market conditions in Taylorsville, UT.
In conclusion, while the FMR gross yield of 3.55% is an upper limit, the ZORI gross yield of 3.16% reflects the current market realities better. This analysis should help investors understand the potential returns when considering properties in ZIP 84123 for Section 8 participation.
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.