Location: Millard County, UT | Metro: Millard County, UT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 84728 reveals a significant gap between the Fair Market Rent (FMR) set at $1,120 for the fiscal year 2026 and the actual market rent, which is currently unavailable. This gap highlights a potential challenge for landlords and small-portfolio investors who must consider the financial implications of renting to voucher tenants.
In ZIP 84728, 100.0% of residents are renters, indicating a high demand for rental properties. However, the median home value and median income figures are not available, making it difficult to assess the economic conditions fully. Despite this, the FMR being higher than the unknown market rent suggests that voucher tenants can offer a stable and predictable source of income for landlords.
The $1,120 FMR represents a 100% coverage rate of the market rent, assuming market rent is below this figure. This scenario transforms ZIP 84728 into a yield play for landlords, as they can expect consistent rental payments without the risk of market fluctuations. Voucher tenants provide a reliable income stream, ensuring that landlords can maintain their cash flow and potentially increase their investment returns.
However, if the actual market rent were to be lower than the FMR, landlords would face a different situation. They might incur losses due to the discrepancy between the FMR and the actual market rent. For instance, if the market rent were $800, the landlord would only receive $800 from the tenant, while the government would cover the remaining $320. This would result in a 28.57% discount on the FMR, representing the cost of housing voucher tenants below open-market rates.
To conclude, the gap between FMR and market rent in ZIP 84728 is critical for landlords and investors. With 100.0% of residents being renters, there is a strong incentive to participate in the Section 8 program. However, the decision should be based on a thorough understanding of the local market conditions and the potential financial impact of renting to voucher tenants.
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.