Section 8 Fair Market Rent (FMR) for ZIP 84321 - 2027

Investment Score for ZIP 84321

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	$930
1 Bedroom	$940
2 Bedrooms	$1,230
3 Bedrooms	$1,700
4 Bedrooms	$2,050
5 Bedrooms	$2,378
6 Bedrooms	$2,663
7 Bedrooms	$2,876
8 Bedrooms	$3,020

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,230	$272,207	0.45%	F
3BR	$1,700	$375,193	0.45%	F
4BR	$2,050	$444,779	0.46%	F
5BR	$2,378	$559,259	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 84321 (Logan, UT) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 84321 is set by HUD for 2026. The FMRs are as follows: - 0BR: $890 - 1BR: $900 - 2BR: $1180 - 3BR: $1640 - 4BR: $1980 Comparing these figures to actual rents, we see that the Zillow median price for a 2BR unit is $270,364. This translates to a monthly rental cost of approximately $1,126 based on a typical mortgage payment formula (assuming a 4.5% interest rate and 30-year term). However, the price-to-FMR ratio for 2BR units is 19.1x, indicating that the actual rent is significantly higher than the FMR. For voucher holders, this means that they will face substantial out-of-pocket costs beyond what their vouchers cover. Specifically, a voucher holder would need to pay an additional $1,126 - $1,180 = -$54 per month, which suggests that the actual rent is slightly below the FMR for 2BR units. However, this is likely an anomaly given the high price-to-FMR ratio. #### Affordability & Renter Profile ZIP code 84321 has a population of 51,702, with 51.0% of residents being renters. The occupancy rate stands at 93.4%, indicating a relatively tight market where most available housing is occupied. Given that 20.5% of the median household income ($69,148) is required to afford a 2BR unit at FMR, it becomes clear that affordability is a significant issue for many residents. The median household income is not particularly high, and the high percentage of renters suggests that there is a strong demand for affordable housing options. #### Investor Angle From an investor perspective, the ZIP code's cash flow potential at FMR needs careful consideration. The Zillow median price for a 2BR unit is $270,364, which translates to a monthly rental cost of about $1,126. If an investor were to purchase a property at this median price and rent it out at the FMR, the cash flow would be positive but only marginally so. This is because the actual rent is higher than the FMR, but the price-to-FMR ratio indicates that the market is overvalued compared to the government-set rent standards. To determine the investment grade, we can look at the cap rate, which is the ratio of net operating income to the property’s value. Assuming a 4.5% interest rate and a 30-year term, the monthly mortgage payment would be around $1,350. Subtracting the FMR of $1,180 from this amount leaves a negative cash flow of $170 per month. Therefore, investing at the median price would not be cash-flow positive at FMR. However, if an investor could find properties below the median price, say at $250,000, the monthly mortgage payment would be approximately $1,250. At this lower price point, renting at the FMR of $1,180 would still result in a negative cash flow of $70 per month. But if the investor could charge closer to the actual market rent of $1,126, the cash flow would be slightly positive, around $56 per month. #### Specific Actionable Insights 1. **Focus on Lower Priced Properties**: Investors should seek properties priced below the median, ideally under $250,000. This would allow them to achieve a more positive cash flow when renting at the FMR or slightly above it. 2. **Consider Short-Term Rentals**: Given the high price-to-FMR ratio, short-term rentals might offer better returns. Platforms like Airbnb can provide higher rates than long-term rentals, potentially making up for the lower FMR. 3. **Target Smaller Units**: 0BR and 1BR units have lower FMRs ($890 and $900 respectively), and these units may be more affordable for voucher holders. Investing in smaller units could help attract tenants who are eligible for Section 8 vouchers. #### Bottom Line For Section 8-focused investors, the ZIP code 84321 presents a challenging environment due to the high price-to-FMR ratio. While there is a strong demand for affordable housing, the current market prices make it difficult to achieve positive cash flows at the FMR levels. Therefore, the recommendation is to **Skip** this ZIP code unless you can find properties well below the median price or are willing to explore alternative rental strategies such as short-term rentals. ### Summary ZIP code 84321 in Logan, UT, has a robust rental market with a high occupancy rate and a significant portion of the population renting. However, the high price-to-FMR ratio makes it challenging for Section 8 voucher holders to find affordable housing. Investors looking to focus on Section 8 properties should consider purchasing below the median price or exploring alternative rental strategies to ensure profitability. Overall, the ZIP code is not recommended for Section 8-focused investments due to the financial constraints imposed by the current market conditions.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.