Location: Iron County, UT | Metro: Iron County, UT
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 | $850 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $309,008 | 0.36% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 84719, Brian Head, UT, reveals some interesting insights into the potential investment returns. Using the annualized Fair Market Rent (FMR) for a 2-bedroom apartment at $1,170 per month for fiscal year 2026, we can calculate the implied gross yield based on the median home value of $239,625.
To derive the gross yield, first calculate the annual rental income. At $1,170 per month, the annual rental income would be $14,040. Dividing this by the median home value gives us an implied gross yield of approximately 5.86%. This calculation assumes that the property can be rented out at the FMR rate and that the property's value aligns with the median home value.
However, the market rent is listed as N/A, which complicates the analysis. Without a specific market rent figure, it's challenging to determine the exact gross yield. But, considering the 0.0% renter density and the lack of data on days on market (DOM), it's evident that the area has very limited rental activity. This suggests that the actual market rent could be significantly lower than the FMR, making the 5.86% gross yield less realistic.
In conclusion, while the theoretical gross yield based on FMR is 5.86%, the practical scenario in ZIP 84719 is likely to offer a much lower gross yield due to the low renter density and the absence of market rent data. Landlords and small-portfolio investors should approach this area with caution, recognizing the challenges in finding tenants willing to pay the FMR rate. The analysis underscores the importance of understanding local market dynamics before investing in a Section 8 program.
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.