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 analysis for Section 8 properties in ZIP code 84655, located in Santaquin, UT, reveals a significant disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1130, while the Zillow Rent Index (ZORI) indicates that the market rent stands at $2024. This means there is a gap of $894, or approximately 44%, between what the government will pay and the amount landlords can charge tenants willing to pay market rates.
In the context of Santaquin, where only 9.8% of residents are renters and the median home value is $500,586, the lower percentage of renters suggests a smaller pool of potential voucher holders. However, the median income of $100,734 still makes Section 8 vouchers an attractive option for many tenants who might otherwise struggle to afford housing in this area.
The cost of housing voucher tenants below open-market rates is a critical consideration for landlords. By accepting Section 8 tenants, landlords are essentially leaving money on the table, as they could potentially charge up to $2024 per month for a similar property. This difference represents a substantial reduction in rental income. However, it also ensures a stable and reliable source of income, as the government guarantees payment for the voucher amount.
To summarize, the gap between the FMR and the market rent in ZIP 84655 is a clear indicator of the financial trade-offs involved when renting to Section 8 tenants. While landlords may see a reduction in monthly income, the stability provided by government-backed payments can be a strategic move in a market with limited rental demand.
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.