Location: Millard County, UT | Metro: Millard County, UT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
U.S. Census Bureau data (2024)
A decision to invest in ZIP code 84624 for Section 8 properties hinges on several key factors. Begin your analysis by addressing these critical questions:
1. Does the Fair Market Rent (FMR) of $1,220 cover the debt service on a property valued at $348,738?
If yes, proceed to the next question. The FMR provides a benchmark for rental income that must exceed the total cost of owning the property, including mortgage payments, taxes, insurance, and maintenance. For a property priced at $348,738, an FMR of $1,220 suggests potential viability if the debt service can be covered.
If no, the investment is not advisable. A landlord would need to ensure that the FMR is sufficient to meet the financial obligations of property ownership.
2. How does the market rent of $876 compare to the FMR?
If the market rent is above the FMR, it indicates strong demand for rentals in the area, but it also means that Section 8 tenants might find it challenging to afford the higher rents, reducing the attractiveness of the property for this program.
If the market rent is equal to the FMR, the property is well-aligned with what Section 8 can pay, making it a suitable investment for landlords interested in this program.
If the market rent is below the FMR, it suggests that the property could be overpriced relative to the local rental market, potentially leading to vacancy issues. However, it also implies that Section 8 subsidies could help bridge the gap between the lower market rent and the higher FMR, making the property viable.
3. Is there enough demand with 17.6% of residents being renters and the average days on the market (DOM) being unknown?
If the DOM is low (considered under 30 days), it signifies high demand for rentals in the area, which is positive for landlords considering Section 8 investments. The 17.6% renter population supports this, indicating a decent pool of potential tenants.
If the DOM is high (over 30 days), it suggests low demand for rentals, which could make it difficult to attract and retain tenants, even with Section 8 subsidies. In this case, the investment would likely be less favorable.
With the DOM being unknown, the decision hinges on other indicators such as the percentage of renters and the relationship between market rent and FMR. If the market rent is significantly below the FMR, the subsidy could compensate for the lack of immediate demand, but caution is advised.
In conclusion, investing in ZIP code 84624 for Section 8 properties is feasible if the FMR covers debt service and the market rent aligns closely with the FMR. Demand must be assessed carefully; a high percentage of renters is promising, but without knowing the DOM, landlords should proceed with caution. Ensure you conduct thorough due diligence on the specific property and neighborhood conditions before making a final decision.
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.