Location: Provo-Orem-Lehi, UT | Metro: Provo-Orem-Lehi, UT MSA
| 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 |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP code 84602 presents a unique set of challenges and opportunities for landlords and small-portfolio investors. With a median home value currently unavailable, it's crucial to look at other metrics to understand the market dynamics.
The fact that a significant percentage of listings are reduced indicates a seller's struggle to find buyers willing to meet their asking prices. This reduction trend suggests a buyer's market where tenants might have more leverage in negotiating rental terms. The median days on market (DOM) being unavailable also points to a potentially slow-moving market, where properties take longer to sell, further indicating a lack of urgency among buyers.
On the rental side, the Fair Market Rent (FMR) for ZIP 84602 in fiscal year 2024 is projected to be $1260. This figure should serve as a benchmark for setting competitive rental rates. However, without the current market rent figure, it's difficult to assess how the FMR compares to actual market conditions. If the current market rent is below the FMR, there could be an opportunity for modest increases in rental rates to align with government projections. Conversely, if the market rent exceeds the FMR, landlords may need to consider adjusting their rates downward to remain competitive.
For long-term hold investors, the setup in ZIP 84602 implies a cautious approach to appreciation expectations. Given the signals from the reduced listings and potentially extended DOM periods, appreciation may be muted over the next 12-24 months. Investors should focus on maintaining cash flow through rental income rather than relying heavily on property value increases. A realistic appreciation thesis would hinge on broader economic recovery and local employment growth, which can drive demand and subsequently increase home values.
In summary, the data suggests a market where landlords must be adaptable with rental rates and realistic about the pace of property value appreciation. Anchoring strategies in the FMR while monitoring local trends will be key to navigating the next few years successfully.
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.