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 market analysis for Section 8 investors in ZIP code 84633, located within the Provo-Orem-Lehi, UT MSA metro area, reveals that voucher tenants would cashflow marginally at the HUD Fair Market Rent (FMR) of $1,050 for the fiscal year 2024. This figure is notably lower than the market rent of $1,332 reported by the Census American Community Survey (ACS).
To understand the financial implications, consider the median home value in the area, which stands at $447,209. The rent-to-price ratio calculated using the HUD FMR is approximately 0.28%, indicating that rental income would cover less than 30% of the typical home's value. Using the market rent figure, the ratio increases to about 0.30%. These ratios suggest that while rental income is modest relative to property values, it can still provide a stable cash flow, especially for premium units.
The dynamics of days on market (DOM) and price cut shares are not applicable in this context, as they pertain more to the buying market rather than the rental market. However, the comparison between the HUD FMR and market rent indicates that landlords operating at the FMR level will experience limited cash flow, likely requiring premium units or efficiency in management to maintain profitability.
In conclusion, the strongest angle for investors in ZIP 84633 is stability. Given the consistent demand for affordable housing and the relatively low risk associated with Section 8 vouchers, long-term stability and predictable cash flow are the most reliable benefits for small-portfolio investors.
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.