Location: San Juan County, UT | Metro: Grand 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 | $1,100 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $490,755 | 0.3% | F |
| 3BR | $2,030 | $586,500 | 0.35% | F |
| 4BR | $2,440 | $655,401 | 0.37% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 84532 in San Juan County, Utah reveals several key points that are crucial for landlords and small-portfolio investors.
Firstly, the rent math does not work in favor of landlords. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,560, whereas the current market rent as per Census ACS data stands at $1,127. This discrepancy indicates that landlords may struggle to meet the FMR if they wish to participate in the Section 8 program, given the lower actual market rates.
Secondly, the acquisition cost in this ZIP code is high relative to the potential rental income. With a median home value of $579,575, purchasing property here comes at a premium. Additionally, the lack of data on days on market (DOM) and the fact that only 0.2% of listings have required a price cut suggest that the housing market is stable but not particularly liquid, making it harder to turn over assets quickly if needed.
Thirdly, there is tenant demand, but it is limited by the size of the population. The ZIP code has a total population of 10,585, with 28.3% being renters. This means that approximately 3,000 residents are looking for rental properties, which could support a modest number of rental units.
In summary, while there is some tenant demand in ZIP 84532, the mismatch between the FMR and the market rent makes it challenging for landlords to participate effectively in the Section 8 program. Coupled with the high median home value and limited liquidity in the housing market, the overall investment climate is not favorable unless one can secure higher-paying tenants outside of Section 8. The stability of the market suggests that once an asset is acquired, maintaining its value will likely be straightforward, but achieving a positive cash flow solely based on Section 8 rents will be difficult.
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.