Location: San Juan County, UT | Metro: San Juan County, UT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 84535 reveals some interesting insights for landlords and small-portfolio investors. The Federal Market Rent (FMR) for a two-bedroom apartment in ZIP 84535 is set at $1,490 annually, based on fiscal year 2026 data. This translates into a monthly rental income of approximately $124.17. Given the median home value in the area is $329,421, the implied gross yield for a property rented under Section 8 would be around 4.65%. This calculation assumes that the property's value directly correlates with the rental income it generates.
In contrast, the market rent for a two-bedroom apartment in ZIP 84535, according to Census ACS data, is $1,159 annually. This equates to a monthly rental income of roughly $96.58. Using the same median home value of $329,421, the implied gross yield for a property rented at market rates would be approximately 3.55%. This lower yield reflects the reality that market rents often do not reach the level of government-subsidized rents, such as those provided through the Section 8 program.
The gross yield comparison between the Section 8 scenario and the market rent scenario clearly shows that renting under Section 8 can provide a higher return on investment. However, the decision to participate in the Section 8 program should also consider other factors such as the administrative burden, the potential for longer-term stability, and the local rental market conditions.
The 16.7% renter density in ZIP 84535 suggests that there is a significant portion of homeowners rather than renters, which might limit the pool of potential Section 8 tenants. Additionally, the N/A-day DOM (days on market) indicates incomplete data regarding how quickly properties are rented out, which could affect the turnover rate and overall occupancy levels.
Despite these considerations, the higher gross yield of 4.65% under Section 8 compared to the market rate yield of 3.55% makes the former more attractive for maximizing immediate cash flow. However, landlords must weigh this against the operational realities of the local rental market and their personal tolerance for government oversight and regulation.
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.