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 | $900 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $272,149 | 0.43% | F |
| 3BR | $1,630 | $360,480 | 0.45% | F |
| 4BR | $1,970 | $450,323 | 0.44% | F |
| 5BR | $2,285 | $544,931 | 0.42% | F |
U.S. Census Bureau data (2024)
Cedar City, UT, with a total population of 30,641, has a significant rental market share at 31.4%. The median household income in the area is $67,299, which suggests a middle-class community. Median home values stand at $419,955, indicating that homeownership is relatively affordable compared to other metropolitan areas.
The Fair Market Rent (FMR) for ZIP code 84721, set at $1,160 for the fiscal year 2026, is notably lower than the actual market rent of $1,558, as measured by Zillow's ZORI index. This discrepancy highlights the potential for Section 8 investors to find properties that offer a balance between government-subsidized rates and the higher rents commanded by the local market.
Given these economic conditions, ZIP 84721 is well-suited for both hands-off voucher operators and hands-on value-add buyers. Voucher operators can benefit from the stability provided by the Section 8 program, which guarantees a steady stream of tenants and rental income at $1,160 per month. Meanwhile, value-add buyers have an opportunity to improve property quality and potentially command closer to the market rent of $1,558, thereby increasing their profit margins.
In summary:
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.