Location: Emery County, UT | Metro: Emery County, UT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 84521 provides a critical snapshot for landlords and small-portfolio investors looking to understand potential yields. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area, as of FY 2026, is set at $970 annually, while the market rent based on Census ACS data stands at $714.
To calculate the implied gross yield, we first annualize these figures. Using the FMR, the annual rental income for a 2-bedroom property would be $970 multiplied by 12, equating to $11,640 per year. Given the median home value of $338,446, the implied gross yield using FMR is approximately 3.44%. This calculation is derived from dividing the annual rental income by the median home value: $11,640 / $338,446 = 0.0344 or 3.44%.
In contrast, using the market rent figure of $714, the annual rental income would be $8,568. The implied gross yield using market rent is approximately 2.53%, calculated as $8,568 / $338,446 = 0.0253 or 2.53%.
The gross yield comparison highlights a significant difference between the two scenarios, with FMR providing a higher yield. However, the reality of the rental market must also be considered. With a renter density of 19.9%, it suggests that a smaller portion of the population in ZIP 84521 are renters, potentially making it harder to secure long-term tenants under the Section 8 program. Additionally, the lack of data on days on market (DOM) indicates uncertainty regarding how quickly properties can be leased, which could impact the overall profitability.
Given the lower renter density, the market rent scenario appears more realistic for most investors. While the FMR offers a higher gross yield, the difficulty in finding and retaining eligible tenants might reduce the actual net operating income (NOI). Therefore, investors should lean towards the market rent figure when projecting potential returns, unless they have specific experience or strategies for managing Section 8 properties effectively.
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.