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 median income in ZIP 84648 stands at $106,604, which provides a solid financial foundation for households. However, when it comes to housing affordability, the picture becomes more nuanced. The market rate for rent, according to Census ACS data, is $914 per month. This figure represents a significant portion of the average household's income, especially considering typical living expenses.
In comparison, the Federal Market Rent (FMR) standard for voucher payments in ZIP 84648 for fiscal year 2024 is set at $1,050. This means that voucher holders could potentially pay a higher rent than the current market rate, which is beneficial for landlords looking to maximize their rental income.
The ZIP code has a relatively low percentage of renters at 20.4%, with a total population of 7,385. This indicates a smaller pool of potential tenants who might be seeking rental properties. Given the disparity between the median income and the market rent, there is an affordability gap that could impact the competition among landlords. Landlords who accept vouchers may find themselves with a more stable tenant base willing to pay closer to the FMR standard, thus reducing vacancy rates and increasing the likelihood of timely rent payments.
The takeaway for landlords considering whether to adopt a voucher vs. cash-pay strategy is clear: accepting vouchers can be a financially advantageous approach. Voucher holders often pay a fixed amount close to $1,050, which is above the current market rate of $914. This strategy can help landlords attract reliable tenants in a market where the median income suggests many may struggle with the cost of living. Embracing vouchers ensures a steady income stream and minimizes the risk associated with finding and retaining financially stable tenants.
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.