Location: Ogden, UT | Metro: Ogden, UT MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,090 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
The analysis of the Section 8 program in ZIP code 84402 reveals a significant financial gap that landlords and small-portfolio investors must consider. The Fair Market Rent (FMR) for the area as of fiscal year 2024 is set at $1210. However, the market rent for ZIP 84402 is currently unreported, which means we cannot directly calculate the percentage difference between the FMR and the actual market rent.
In the absence of market rent data, it's important to understand the implications of the reported FMR. When the FMR exceeds the market rent, as it often does, it signifies that voucher tenants can afford to pay more than what landlords might charge in the open market. This scenario turns the property into a yield play, where landlords can potentially earn higher returns on their investment by accepting Section 8 tenants. The higher payment from the voucher program compared to typical rental rates allows landlords to cover operating costs, maintenance, and generate profit margins that are competitive with other investment opportunities.
On the flip side, if the market rent were known and found to be higher than the FMR, landlords would face the challenge of accepting lower rents from Section 8 tenants. This could result in a net loss per unit unless the landlord can manage expenses efficiently. The cost of housing voucher tenants below open-market rates means landlords have to balance the reduced income with the stability that comes from government-backed rent payments.
Understanding the local context in Unknown, UT, is crucial for making informed decisions. Despite the lack of specific percentages for renters, median home values, and median incomes, the general trend in areas with similar characteristics suggests that landlords should carefully evaluate their costs and expected returns before deciding whether to participate in the Section 8 program. The decision should be based on the ability to maintain profitability while providing affordable housing options.
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.