Location: Logan, UT | Metro: Logan, UT-ID MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,150 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,510 |
| 5 Bedrooms | $2,912 |
| 6 Bedrooms | $3,261 |
| 7 Bedrooms | $3,522 |
| 8 Bedrooms | $3,698 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 84328 reveals a significant disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1,100, while the Census American Community Survey (ACS) indicates that the market rent stands at $1,383. This creates a gap of $283, or approximately 25.7%, between what landlords can charge voucher tenants and the open-market rental rates.
The lower FMR compared to the market rent means that landlords accepting Section 8 vouchers will be renting properties below the prevailing market rate. In ZIP 84328, where only 5.2% of residents are renters, the competition for rental units is relatively low, which might not compensate for the reduced rent through higher occupancy rates. Additionally, with a median home value of $683,149 and a median income of $113,646, the area is predominantly owner-occupied, further reducing the pool of potential voucher tenants.
This scenario presents a challenge for landlords and small-portfolio investors looking to maximize their returns. The cost of housing voucher tenants below open-market rates can be substantial, especially when considering the total number of units in a portfolio. For instance, if an investor owns ten rental units in ZIP 84328, the total annual revenue loss due to the Section 8 rate would amount to $34,320 ($283 per unit per month multiplied by 12 months).
Moreover, the lower FMR does not necessarily translate into lower maintenance costs or vacancy rates. Landlords still need to manage properties effectively, ensuring they meet the standards required by the Housing Choice Voucher program. This includes regular inspections, compliance with health and safety regulations, and possibly dealing with a different set of tenant-related issues compared to open-market rentals.
In conclusion, the gap between the FMR and market rent in ZIP 84328 makes it a less attractive option for landlords seeking to optimize their yields. Accepting Section 8 vouchers means operating at a discount relative to the market, which must be weighed against the benefits of stable, government-backed rental income. Investors should carefully consider these factors before deciding to participate in the Section 8 program in this particular ZIP code.
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.