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 Section 8 market analysis for ZIP code 84626, located within the Provo-Orem-Lehi, UT MSA, reveals several key insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) set by HUD for this area in fiscal year 2024 is $1050. However, due to limited data availability, we cannot provide a direct comparison against the current market rent. Nonetheless, based on the HUD FMR, voucher tenants will generally cashflow at FMR levels, meaning that landlords can expect a positive cash flow when renting properties at the HUD-set rate.
To further analyze the investment potential, it's important to consider the median home value in ZIP 84626, which is currently not available. This missing data makes it challenging to derive an accurate rent-to-price ratio, a critical metric for understanding the relationship between rental income and property values. Despite this limitation, it's worth noting that the lack of specific market rent figures suggests that the HUD FMR might be reflective of the local rental market conditions, indicating a stable environment for voucher tenants.
The days on market (DOM) and the percentage of homes that have been discounted during the listing period are also not available. These metrics typically help in assessing the balance between rental and home buying markets. In their absence, we must rely on the FMR and cash flow expectations to guide our analysis. Given the positive cash flow at FMR levels, the primary focus for investors should be on the cash flow potential of properties in this ZIP code.
The strongest angle for investors in ZIP 84626 is the potential for cash flow. With voucher tenants able to cover expenses and provide a margin above the costs, landlords can secure steady, predictable income streams without the need for premium units. This makes Section 8 participation a viable strategy for achieving financial stability and generating regular returns.
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.