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 | $1,140 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,830 | $588,045 | 0.31% | F |
| 4BR | $2,210 | $726,594 | 0.3% | F |
| 5BR | $2,564 | $885,824 | 0.29% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 84664 presents a nuanced scenario for both landlords and small-portfolio investors. With a median home value of $730,130, the area is clearly positioned in a higher-tier market segment. However, the fact that only 0.3% of listings have been reduced signals a resilient housing market, where sellers maintain strong pricing power despite the economic uncertainties.
The median days on market (DOM) at 59 days indicates that homes are selling relatively quickly, suggesting a robust demand for properties in this ZIP code. This quick turnover rate supports the notion that sellers can continue to command premium prices, as there is little indication of prolonged inventory buildup which could erode seller pricing power.
On the rental side, the Federal Market Rent (FMR) for ZIP 84664 in fiscal year 2024 is set at $1,210. In contrast, the current market rent, according to the Census ACS, stands at $1,386. This discrepancy highlights an opportunity for landlords who can leverage the higher market rents while still benefiting from the lower FMR when dealing with subsidized tenants or programs. The gap between FMR and market rent suggests a favorable environment for rental income, provided that the vacancy rates remain low and tenant quality is high.
For long-term investors, the setup implied by the data points towards a steady but not explosive appreciation thesis. While the median home value is already high, the combination of quick sales and minimal price reductions indicates that the market is unlikely to experience significant declines in value. Instead, it is more likely to see modest growth, contingent upon broader economic conditions and local employment trends.
Investors should be cautious about relying solely on appreciation for returns, given the limited historical data suggesting rapid increases in property values. The focus should be on maintaining strong rental income and property management practices, while being prepared for gradual value appreciation over time. This approach aligns with the current market dynamics and provides a balanced strategy for both short-term cash flow and long-term asset growth.
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.