Location: Provo-Orem-Lehi, UT | Metro: Provo-Orem-Lehi, UT MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,240 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,970 | $554,634 | 0.36% | F |
| 4BR | $2,370 | $662,018 | 0.36% | F |
| 5BR | $2,749 | $808,624 | 0.34% | F |
U.S. Census Bureau data (2024)
The ZIP code 84653 is primarily a homeowner-dominated area rather than a renter-heavy zone. With only 6.8% of the population renting, the demand for rental properties, especially those that accept Section 8 vouchers, is relatively low. This contrasts sharply with areas where a higher percentage of residents are renters, typically indicating stronger voucher demand.
The median household income in 84653 stands at $112,454, which is significantly above the national average. For context, a market rent of $1,900 consumes approximately 17.7% of the median income, a figure that might be considered high but manageable for many households in this ZIP code. However, it's worth noting that the Fair Market Rent (FMR) for 84653, as set for FY 2024, is $1,370. This suggests that the current market rent is about 40% higher than what the government deems fair for the area, potentially making it challenging for tenants relying on vouchers to afford properties at the $1,900 rate.
Landlords and small-portfolio investors in 84653 should expect a tenant profile that includes individuals and families who are likely to have higher incomes relative to the national average. These tenants might include young professionals, families, and retirees who can afford rents exceeding the FMR but are still sensitive to price increases. While there is some demand for rentals, particularly among those who prefer not to own property, the overall rental market is not as robust as in more urban or densely populated areas. As such, landlords may find that accepting Section 8 vouchers could limit their pool of potential tenants, given the discrepancy between market rent and FMR.
To summarize, 84653 is not an ideal location for landlords focusing solely on Section 8 tenants due to the low percentage of renters and the higher-than-FMR market rents. Investors should prepare for a smaller pool of voucher holders and consider targeting tenants who are financially stable and willing to pay market rates, even if they are slightly above the government's FMR guidelines.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.