Location: Logan, UT | Metro: Logan, UT-ID MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,070 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 84327 might have several concerns regarding the feasibility of investing in rental properties under the Section 8 program. Let's address these objections directly with the available data.
The first objection is whether the Fair Market Rent (FMR) of $910 for the fiscal year 2024 will be sufficient to cover the mortgage on a home valued at $472,808. To evaluate this, we need to consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage with an interest rate of 4%, the monthly payment on a loan of approximately $236,404 (considering a 50% down payment) would be around $1,100. This means that the FMR of $910 is not enough to cover the mortgage payments alone. The landlord would need to rely on other sources of income or accept a loss until property values and rents increase.
The second concern is the level of renter demand at 14.1%. While this percentage indicates the share of households that are renters, it does not provide the full picture of the rental market dynamics in ZIP 84327. A 14.1% rental rate could mean a smaller pool of potential tenants compared to areas with higher percentages. However, it also suggests a lower competition among landlords, which could stabilize renter retention. To fully assess the demand, one would need additional data such as the vacancy rate and the number of Section 8 eligible families in the area. Without this information, it's challenging to determine if the demand is robust enough to sustain an investment.
The final objection pertains to the ability of vouchers to keep pace with market rents. Unfortunately, the data provided does not include specific figures for voucher amounts in ZIP 84327. In general, voucher amounts can vary widely based on local housing costs and federal funding levels. If the voucher amount is less than the FMR, landlords may struggle to find enough eligible tenants willing to pay the required rent. Conversely, if the voucher amount matches or exceeds the FMR, it could make the investment more viable. Landlords should monitor local HUD announcements and consult with their local housing authorities to stay informed about any adjustments to voucher amounts.
In conclusion, while ZIP 84327 presents some challenges for Section 8 investors, particularly with the FMR not covering mortgage payments, the stability of renter demand and the adequacy of voucher amounts remain uncertain without further detailed analysis. Careful consideration of these factors is essential before making an investment decision.
Data Sources: FMR data from HUD (2027). 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.