Location: Emery County, UT | Metro: Emery County, UT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 84516 reveals some interesting points that landlords and small-portfolio investors should consider.
Based on the Fair Market Rent (FMR) for a two-bedroom unit set at $1,030 per month for fiscal year 2026, the annualized rent would be $12,360. However, without a specific median home value for ZIP 84516, we cannot calculate an exact gross yield. To illustrate the potential gross yield, let's assume a median home value of $300,000, a common figure for many suburban areas. With this assumption, the implied gross yield using the FMR would be approximately 4.12% ($12,360 / $300,000).
In contrast, when considering the market rent, which is not available, we must rely on external sources or estimates to determine a reasonable figure. If the market rent were higher, say $1,500 per month, the annualized rent would increase to $18,000. Assuming the same median home value of $300,000, the gross yield would then be 6%, a significant improvement over the FMR-based scenario.
The gross yield comparison clearly shows that the market rent scenario offers a better return on investment. However, the reality of achieving such a gross yield depends on several factors, including the actual market conditions and the percentage of homes occupied by renters participating in the Section 8 program.
Given the renter density of 7.5% in ZIP 84516, it is important to note that only a portion of the rental market may be eligible for Section 8. This implies that while the FMR scenario provides a baseline for potential income, it may not reflect the true earning potential if a property can attract tenants willing to pay market rates.
The Days on Market (DOM) information being not available suggests there might be limited data on how quickly properties are rented out in this area. A lower DOM typically indicates a faster turnover rate, which could be beneficial for landlords looking to minimize vacancy periods and maximize rental income.
To summarize, the Section 8 cap-rate for ZIP 84516, based on the FMR, suggests a gross yield of around 4.12%. In comparison, a hypothetical market rent scenario could offer a gross yield of about 6%. The latter is more attractive but also more speculative given the lack of precise market rent data. Investors should weigh these figures carefully and consider the local rental market dynamics before making any decisions.
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.