Section 8 Fair Market Rent (FMR) for ZIP 84601 - 2027

Location: Provo-Orem-Lehi, UT | Metro: Provo-Orem-Lehi, UT MSA

Investment Score for ZIP 84601

F
Monthly Rent (2BR)
$1,320
Median Price (2BR)
$326,959
1% Rule
0.4%
Annual Yield
4.84%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,140
1 Bedroom$1,140
2 Bedrooms$1,320
3 Bedrooms$1,830
4 Bedrooms$2,210
5 Bedrooms$2,564
6 Bedrooms$2,872
7 Bedrooms$3,102
8 Bedrooms$3,257

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,320 $326,959 0.4% F
3BR $1,830 $437,078 0.42% F
4BR $2,210 $499,471 0.44% F
5BR $2,564 $594,594 0.43% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
32,330
Median Household Income
$67,207
Housing Units
11,456
Renter Percentage
51.9%
Occupancy Rate
95.5%
Renter Occupied
5,680

The ZIP code 84601, located in Provo, UT, stands out due to its unique demographic and economic characteristics. With a population of 32,330 residents, 51.9% of whom rent their homes, this area has a strong rental market. The median income in 84601 is $67,207, which is relatively modest compared to the median home value of $452,170, indicating that homeownership is less accessible to many residents.

In terms of Section 8 vouchers, the Fair Market Rent (FMR) for ZIP 84601 for fiscal year 2024 is set at $1,160. This is significantly lower than the market rent, as indicated by the ZORI (Zillow Rent Index), which stands at $1,466. This difference suggests that landlords in 84601 may find it challenging to cover their costs solely through Section 8 vouchers, as they do not fully align with the local market conditions.

The data signature for ZIP 84601 reads as stable. The high percentage of renters indicates a consistent demand for rental properties, while the median income and home values suggest a steady economic environment without rapid fluctuations. However, the disparity between the FMR and market rents signals a potential challenge for landlords who rely on Section 8 vouchers, as they may need to supplement their income or seek alternative solutions to maintain profitability.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.