Location: Iron County, UT | Metro: St. George, 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 | $1,090 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,870 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,420 | $287,195 | 0.49% | F |
| 3BR | $1,870 | $371,817 | 0.5% | F |
| 4BR | $2,370 | $448,221 | 0.53% | F |
| 5BR | $2,749 | $567,047 | 0.48% | F |
U.S. Census Bureau data (2024)
ZIP 84720, located in Cedar City, UT, is best suited as an appreciation play within a Section 8 portfolio strategy. The area's median Fair Market Rent (FMR) for FY 2024 is set at $1110, which is significantly lower than the market rent of $1,349. This indicates that there is potential for rental income to rise closer to market rates over time, thus enhancing the property's value.
The median home value in ZIP 84720 stands at $430,511, reflecting a solid base from which appreciation can occur. While the FMR is currently below market rates, landlords can leverage this discrepancy to increase their cash flow gradually without losing tenants, given the relatively low 0.2% price-cut share needed to attract renters.
A key indicator supporting the appreciation play thesis is the Days on Market (DOM), which is 67 days. This suggests that properties in the area are selling relatively quickly, indicating strong demand and potential for capital appreciation. In a market where homes sell swiftly, landlords can expect their investments to grow in value over the long term, making ZIP 84720 an attractive option for those looking to build wealth through property ownership.
Additionally, the 35.6% renter share and median income of $67,670 provide a stable tenant base. These figures indicate that there is a sufficient number of renters who can afford the current FMR, ensuring steady occupancy rates. The moderate income level also means that tenants are likely to be financially stable, reducing the risk of default and increasing the likelihood of maintaining consistent cash flows.
In conclusion, ZIP 84720 is best categorized as an appreciation play due to its favorable conditions for gradual rental income increases and rapid property sales, which together create a scenario where both cash flow and asset value can improve over time. Landlords should consider this area for its potential to enhance their overall investment portfolio performance.
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.