Location: Carbon County, UT | Metro: Carbon County, UT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
U.S. Census Bureau data (2024)
ZIP 84542, located in Carbon County, UT metro, serves as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the area is set at $1,130 for fiscal year 2026. In contrast, the current market rent stands at $888. This creates a significant positive spread of $242 per unit, which can be leveraged to ensure steady and predictable cash flow.
The substantial gap between the FMR and the market rent means that landlords participating in the Section 8 program can charge rents above what the private market would bear, thereby maximizing their revenue potential. This is particularly advantageous in ZIP 84542, where the median home value is not available, suggesting that homeownership may not be as prevalent as renting. With a renter share of 37.6%, there is a notable demand for rental properties, making this ZIP code an ideal location for cash-flow generation through Section 8 participation.
The median income of $61,466 indicates that many residents may rely on government assistance programs such as Section 8 to afford housing. Consequently, the demand for subsidized rentals is likely to remain stable, providing a reliable source of income for landlords who are willing to participate in the program.
While appreciation potential and diversification are important factors in real estate investing, ZIP 84542 excels as a cash-flow anchor due to the favorable rent differential. Landlords and small-portfolio investors should consider this ZIP code for its ability to provide consistent cash flow, especially given the higher FMR compared to the local market rent.
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.