Location: Emery County, UT | Metro: Carbon County, UT
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,340 | $289,490 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 84501 reveals an interesting contrast between federally mandated Fair Market Rent (FMR) and actual market conditions. Using the 2BR FMR of $1,090 per month, which annualizes to $13,080, the implied gross yield for a property valued at $309,954 would be approximately 4.2%. This calculation is based on the assumption that the property's value fully reflects its potential rental income under Section 8.
In comparison, using the market rent figure of $878 per month, which annualizes to $10,536, the implied gross yield drops to around 3.4%. This lower yield reflects the current rental market dynamics in ZIP 84501, where the average market rent is significantly below the FMR.
The disparity between these two yields underscores the importance of understanding the local rental market. With a renter density of 32.4%, it's evident that a significant portion of the population is already renting, potentially increasing competition for rental properties and putting downward pressure on rents. Additionally, the lack of data on days on market (DOM) suggests either limited turnover or insufficient data to draw conclusions about how quickly properties are rented out.
Given these factors, the market rent scenario appears more realistic for most investors. While the FMR provides a benchmark, it often does not reflect the actual rental environment. In ZIP 84501, landlords should expect to achieve closer to the market rent of $878 per month for a 2BR unit, translating into a gross yield of 3.4%. This yield is lower than what might be achieved through Section 8, but it aligns better with the observed rental behavior and density in the area.
To summarize, while the FMR-based gross yield of 4.2% is theoretically possible, the more practical expectation for a 2BR unit in ZIP 84501 is a gross yield of 3.4%, based on current market rents. This assessment should guide investors in setting realistic expectations and in making informed decisions about their investment strategies.
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.