Location: San Juan County, UT | Metro: Navajo County, AZ
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 84536 focuses on the potential rental income under Section 8 housing programs versus the market rent scenario. The Federal Market Rent (FMR) for a 2-bedroom apartment in ZIP 84536 for fiscal year 2026 is set at $1,250 per month. To annualize this figure, we multiply by 12, resulting in an annual rent of $15,000.
Given that the median home value for ZIP 84536 is not available, we must consider the implications of this data gap. However, we can still derive some insights into the gross yield for each scenario.
In the case of Section 8, the annualized rent of $15,000 represents a fixed income stream. Assuming a typical home value range for the area, let's use a hypothetical median home value of $300,000 for illustration purposes. This would imply a gross yield of 5% ($15,000 / $300,000 * 100).
For the market rent scenario, without specific figures, it's challenging to provide a precise gross yield. However, if we assume market rents are higher than the Section 8 rate, the gross yield could potentially exceed 5%. For example, if market rents were $1,500 per month, the annual rent would be $18,000, implying a gross yield of 6% using the same $300,000 home value.
The gross yield comparison between the two scenarios is straightforward: the market rent scenario suggests a higher gross yield than the Section 8 scenario. However, the decision to participate in Section 8 or pursue market rents should also consider other factors such as the stability of income, property management requirements, and the local rental market dynamics.
The renter density in ZIP 84536 is 7.8%, indicating a relatively low proportion of renters compared to homeowners. This statistic implies that there may be fewer potential tenants in the area, which could affect the demand for rental properties. Additionally, the Days on Market (DOM) data is not available, which is crucial for understanding how quickly properties are rented out in the area.
Despite these limitations, the Section 8 program offers a stable income source, which can be particularly attractive during economic downturns or periods of high vacancy rates. The market rent scenario, while offering a higher gross yield, comes with the risk of fluctuating rental incomes and potentially higher vacancy rates.
In conclusion, while the market rent scenario presents a higher gross yield, the lower renter density and lack of DOM data suggest that the Section 8 option might be more realistic for ZIP 84536. The stability and predictability of Section 8 rents can outweigh the slightly higher yields of market rents, especially in a market with limited rental demand.
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.