Section 8 Fair Market Rent (FMR) for ZIP 84604 - 2027

Investment Score for ZIP 84604

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	$1,150
1 Bedroom	$1,440
2 Bedrooms	$1,580
3 Bedrooms	$2,190
4 Bedrooms	$2,640
5 Bedrooms	$3,062
6 Bedrooms	$3,429
7 Bedrooms	$3,703
8 Bedrooms	$3,888

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,580	$404,835	0.39%	F
3BR	$2,190	$492,676	0.44%	F
4BR	$2,640	$601,943	0.44%	F
5BR	$3,062	$825,658	0.37%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 84604 (Provo, UT) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 84604 in Provo, Utah, provide insight into the rental market dynamics. For a two-bedroom unit, the FMR is set at $1320, which represents 21.0% of the median household income of $75,571. However, the actual median rent for a two-bedroom unit on Zillow is significantly higher at $399,667, resulting in a price-to-FMR ratio of 25.2x. This means that the actual median rent is over 25 times the FMR, indicating that the rental market is highly unaffordable for those relying solely on Section 8 vouchers. Given the high actual rent compared to FMR, voucher holders face significant constraints. The maximum amount a voucher holder can pay for a two-bedroom unit is $1320, but the average market rent is much higher, making it challenging to find suitable housing within their budget. This disparity suggests that voucher holders might need to look for units below the median size or in less desirable locations to stay within their financial limits. #### Affordability & Renter Profile ZIP code 84604 has a population of 44,707, with 52.5% of residents being renters. The occupancy rate stands at 92.2%, indicating a tight rental market where demand is high relative to supply. Given that the majority of residents are renters and the occupancy rate is close to full capacity, it is likely that many renters are facing affordability challenges. The median household income of $75,571 is relatively moderate, and with 52.5% of the population renting, it suggests that there is a significant portion of the community that relies on rental properties. The high price-to-FMR ratio of 25.2x further underscores the affordability issue. With the median rent for a two-bedroom unit being $399,667, it is clear that the market is not aligned with the financial capabilities of typical renters, especially those who depend on government assistance. This tight market condition implies that there is little room for lower-cost rentals, making it difficult for low-income families to find affordable housing options. #### Investor Angle From an investor perspective, the ZIP code 84604 presents a mixed picture. While the high actual rent prices indicate strong demand, the FMR levels suggest that the potential for cash flow from Section 8 voucher tenants is limited. The FMR for a two-bedroom unit is $1320, which is far below the actual median rent of $399,667. Therefore, landlords who rely on Section 8 vouchers will likely experience negative cash flow if they aim to charge market rates. However, investors who can find units priced closer to the FMR level may still achieve positive cash flow, though the competition for these units is likely intense given the tight market conditions. The investment grade would be considered low due to the mismatch between market rents and FMR, leading to a higher risk of vacancy or difficulty in finding qualified tenants willing to pay the FMR rates. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on smaller units such as one-bedroom or studio apartments. These units have lower FMRs ($1190 and $1090 respectively), which are more likely to align with market rents in a way that allows for positive cash flow. Additionally, smaller units are often more affordable for voucher holders, increasing the likelihood of securing tenants. 2. **Target Lower-Cost Neighborhoods Within 84604**: There may be pockets within the ZIP code where rents are lower due to factors like older housing stock, proximity to less desirable areas, or specific zoning regulations. Identifying and targeting these neighborhoods could help investors find properties that are more in line with FMRs, thereby improving the chances of positive cash flow. 3. **Consider Short-Term Rentals**: Given the high price-to-FMR ratio, traditional long-term rentals may not be financially viable for Section 8-focused investors. Instead, exploring short-term rental opportunities through platforms like Airbnb could offer a more lucrative alternative. This strategy would bypass the constraints imposed by FMR and allow investors to capitalize on the high market demand. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 84604 is to **skip** this market. The high actual rent prices and the significant gap between market rents and FMR make it challenging to achieve positive cash flow. While there are some actionable insights, such as focusing on smaller units or targeting lower-cost neighborhoods, the overall market conditions do not favor investments that rely heavily on Section 8 vouchers. The mismatch between market rents and FMR levels poses a substantial risk to cash flow and profitability, suggesting that this ZIP code is not an ideal location for such investments.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.