Location: Piute County, UT | Metro: Piute County, UT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
U.S. Census Bureau data (2024)
The ZIP code 84723 presents an interesting case for real-estate investors, particularly those considering properties under the Section 8 program. However, several concerns arise when evaluating this area for investment opportunities.
Objection 1: Will Fair Market Rent (FMR) of $1,260 cover the mortgage on a home in this area?
The data provided does not include the average home price or typical mortgage payments in ZIP 84723, making it difficult to definitively state whether the FMR will cover the mortgage. To make an informed decision, you must compare the FMR against the expected mortgage costs based on the purchase price of the property. If the mortgage payment exceeds the FMR, the investment may not be profitable under the Section 8 program.
Objection 2: Is there enough renter demand at 2.4%?
The 2.4% figure likely represents the percentage of the population renting homes in ZIP 84723. This low percentage suggests that there might be limited demand for rental properties, which could pose challenges for finding tenants willing to participate in the Section 8 program. The low rental rate indicates a preference for homeownership in the area, potentially reducing the pool of eligible renters.
Objection 3: Will vouchers keep pace with market rents?
The data does not provide information on the historical trends of voucher amounts versus market rents in ZIP 84723. Without this context, it's impossible to predict if future adjustments to voucher amounts will match increases in market rents. In general, voucher amounts are adjusted annually based on HUD's calculations, but these adjustments may not always align with local market conditions.
In conclusion, while ZIP 84723 offers potential opportunities for Section 8 investments, the provided data raises significant questions about profitability and tenant availability. Landlords and small-portfolio investors should carefully consider these factors and seek additional local market data before committing to investments in this area.
Data Sources: FMR data from HUD (2027). 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.