Section 8 Fair Market Rent (FMR) for ZIP 84660 - 2027

Investment Score for ZIP 84660

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,320	$401,028	0.33%	F
3BR	$1,830	$458,772	0.4%	F
4BR	$2,210	$524,146	0.42%	F
5BR	$2,564	$633,420	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 84660 (Spanish Fork, UT) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Spanish Fork, UT, as of 2026, is set at $1410 for a two-bedroom unit. This represents approximately 16.2% of the median household income of $104,355. However, the actual rental market in Spanish Fork is significantly higher, with Zillow reporting a median price of $396,954 for a two-bedroom home. The price-to-FMR ratio of 23.5x indicates that the actual rental costs far exceed the FMR guidelines, creating a significant constraint for voucher holders. For instance, a three-bedroom unit has an FMR of $1960, but the actual market rent would likely be much higher, making it challenging for Section 8 recipients to find suitable housing. #### Affordability & Renter Profile Spanish Fork has a population of 48,583, with 20.1% of residents being renters. The occupancy rate stands at 97.1%, suggesting a tight rental market with limited availability. Given the high median household income and the relatively low percentage of renters, it is likely that those renting in Spanish Fork are either young professionals, families who have recently moved into the area, or individuals who prefer renting over buying due to lifestyle choices. The high price-to-FMR ratio further underscores the affordability challenge faced by renters, especially those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 84660 presents a mixed picture. While the rental market is robust, with a high occupancy rate and strong demand, the FMR guidelines are far below the actual market rents. This means that properties rented under the Section 8 program will likely generate lower cash flows compared to market-rate rentals. For example, a two-bedroom property renting at the FMR of $1410 would be significantly below the market rate, which could be upwards of $396,954 based on Zillow’s median home value. Given these dynamics, the investment grade for Section 8-focused properties in Spanish Fork would be moderate. Investors should carefully consider the potential for lower cash flows and the challenges associated with finding tenants willing to accept the lower FMR rates. Additionally, the high price-to-FMR ratio suggests that there is a significant gap between what the government deems affordable and what the market demands, which could impact the overall profitability of such investments. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might want to focus on smaller units like one-bedroom apartments. The FMR for a one-bedroom unit is $1220, which is still below the market rate but closer to what some renters might be willing to pay. This could provide a better balance between government guidelines and market realities. 2. **Consider Location-Specific Strategies**: Since Spanish Fork is part of Utah County, investors should look at specific neighborhoods within the ZIP code where the rental market might be slightly more affordable. Areas near schools, universities, or employment centers might have a higher concentration of renters who are more likely to accept FMR rates. 3. **Diversify Tenant Base**: To mitigate the risk of lower cash flows, investors could consider diversifying their tenant base by including a mix of market-rate and Section 8 tenants. This approach can help stabilize cash flows while still benefiting from the strong rental demand in the area. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 84660 would be to **Skip**. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow when strictly adhering to FMR guidelines. Instead, investors might want to explore other ZIP codes with a higher percentage of renters or a more favorable price-to-FMR ratio. Alternatively, they could consider a diversified strategy that includes both market-rate and Section 8 tenants to balance the financial risks and rewards.

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.