Location: Provo-Orem-Lehi, UT | Metro: Provo-Orem-Lehi, UT MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,190 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
The ZIP code 84605, located in Provo, UT, represents a thriving suburban community with a total population of 44,605 residents. Approximately 40% of the residents are renters, reflecting a diverse housing market. The median household income stands at $49,605, while the median home value is $233,639.
In terms of rental economics, the Fair Market Rent (FMR) for ZIP 84605 in fiscal year 2024 is set at $1,260. In contrast, the current market rent is $1,377, indicating a slight premium over the FMR. This suggests that landlords operating in this area could potentially achieve rents slightly above the federally subsidized rate, but the market is not drastically higher.
When considering whether this area suits a hands-off voucher operator or a hands-on value-add buyer, the answer lies in the balance between the FMR and market rent. Given that the FMR is lower than the market rent, a hands-on approach might be more advantageous. Investors looking to add value through renovations or improvements could see better returns compared to those who simply rely on the voucher system.
The community's livability score of 72 out of 100 suggests a good quality of life, with strong scores in amenities and cost of living. However, there is room for improvement in education and safety metrics, which could present opportunities for value-add investments.
Provo, UT, with its robust healthcare and social assistance sector, along with professional services and education, offers a stable economic foundation. The unemployment rate is 9.6%, and the average commute time is 30 minutes, with 17% of the workforce choosing to work from home.
For Section 8 investors, the data indicates that while the area is suitable for both hands-off and hands-on strategies, a value-add approach could yield better results due to the modest gap between FMR and market rent. This ZIP code presents a balanced opportunity for investors willing to engage actively in property management and enhancement.
Data Sources: FMR data from HUD (2027).
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.