Location: Salt Lake City, UT | Metro: Salt Lake City, UT HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,210 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,450 |
| 5 Bedrooms | $2,842 |
| 6 Bedrooms | $3,183 |
| 7 Bedrooms | $3,438 |
| 8 Bedrooms | $3,610 |
The Section 8 analysis for ZIP code 84125 centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR for ZIP 84125 is set at $1610. However, the market rent data is currently unavailable, which complicates the direct comparison needed for a precise gap calculation.
In the absence of market rent figures, it's important to understand the implications of the FMR being higher than the typical market rent. This scenario would suggest that voucher tenants could potentially offer landlords a higher rental income than what the open market might provide. The reason lies in the structure of the Housing Choice Voucher program, where the government subsidizes the difference between the tenant's contribution (typically 30% of their income) and the FMR. Therefore, if the market rent is lower than the FMR, landlords could see an increased cash flow from voucher tenants, making it a favorable yield play.
Conversely, if the market rent were to be higher than the FMR, landlords accepting voucher tenants would be renting below the open-market rate. This situation presents a trade-off: while the guaranteed payment from the voucher program reduces vacancy risk and ensures consistent income, it also means landlords are foregoing potential higher rents they could charge non-voucher tenants.
Within the broader context of Unknown, UT, we lack specific data points such as the percentage of renters, median home values, and median incomes. These details are crucial for a comprehensive understanding of the local real estate market dynamics and how they intersect with the Section 8 program. Without these figures, it's challenging to provide a fully anchored analysis, but the principle remains: the FMR acts as a benchmark for landlords considering voucher tenants, impacting their decision-making process regarding yield versus market rate risks.
Data Sources: FMR data from HUD (2027).
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.