Location: Sanpete County, UT | Metro: Sanpete County, UT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
U.S. Census Bureau data (2024)
A skeptical investor might raise several concerns about investing in ZIP code 84646, Moroni, Utah, based on the data provided. Here are some of those objections, along with clarifications:
Objection 1: Will Fair Market Rent (FMR) of $970 cover the mortgage on a home in ZIP 84646?
The median home cost in Moroni (zip 84646) is $294,700 according to recent data. To determine if the FMR will cover the mortgage, we need to calculate the potential monthly mortgage payment. Assuming a typical 20% down payment and a 30-year fixed-rate mortgage at a current average rate of 6.5%, the monthly mortgage payment would be approximately $1,500. This means that the FMR of $970 alone would not be sufficient to cover the mortgage. However, it is important to consider that this FMR is expected to increase over time, potentially reaching higher levels by FY 2026.
Objection 2: Is there enough renter demand at 14.4%?
Renters make up 12.2% of the Moroni (zip 84646) population, which is slightly below the 14.4% threshold mentioned. This could indicate a relatively low demand for rental properties. However, the percentage of houses and apartments available for rent in Moroni (zip 84646) is 1.7%, suggesting that there is still a niche market for rental properties. Additionally, the median gross rent in 2023 was $951, which aligns closely with the FMR, indicating a stable rental market.
Objection 3: Will vouchers keep pace with $841 market rents?
The data does not provide specific information regarding the pace of voucher increases relative to market rents in ZIP 84646. However, the median gross rent in 2023 was $951, which is slightly above the $841 market rent figure. This suggests that while vouchers may not fully cover the rent, they are still a significant portion of the total cost. The effectiveness of vouchers in covering market rents would depend on their value and any adjustments made by local authorities.
In summary, while the FMR of $970 may not fully cover the mortgage on a home priced at $294,700, it is expected to rise. The 12.2% renter population indicates a smaller but stable rental market, and vouchers seem to contribute significantly towards covering the median gross rent of $951. These points should be considered when evaluating the investment potential in ZIP 84646.
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.