Location: St. George, UT | Metro: St. George, UT MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,260 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,710 |
| 5 Bedrooms | $3,144 |
| 6 Bedrooms | $3,521 |
| 7 Bedrooms | $3,803 |
| 8 Bedrooms | $3,993 |
U.S. Census Bureau data (2024)
To analyze the Section 8 cap-rate scenario for ZIP code 84733, we start with the annualized Fair Market Rent (FMR) for a two-bedroom property, which is set at $1360 per month for fiscal year 2024. This translates into an annual rental income of $16,320. However, the median home value for this area is currently not available, nor is the market rent figure. Without these critical data points, it's challenging to provide a precise comparison between the implied gross yield from Section 8 and the market rent.
In the context of Section 8, the implied gross yield can be calculated based on the FMR. Assuming a typical home value for ZIP 84733, let's consider a hypothetical median home value of $300,000. The implied gross yield would then be approximately 5.44% ($16,320 / $300,000).
Given that the actual market rent is not available, we cannot calculate the exact gross yield for non-Section 8 rentals. However, if we were to assume that market rents typically command a higher premium, the gross yield would likely exceed the Section 8 rate. For example, if market rents were 20% higher than the FMR, the monthly rent would be $1632, leading to an annual rental income of $19,584. This would imply a gross yield of around 6.53% ($19,584 / $300,000).
The renter density in ZIP 84733 is 19.8%, indicating a moderate demand for rental properties. With the number of days on the market (DOM) also unavailable, we can't determine how quickly units are filling. However, a moderate renter density suggests that while there is a significant portion of homeowners, there is still a notable rental market presence.
Considering the data at hand, the Section 8 gross yield of 5.44% is more conservative compared to the hypothetical market rent yield of 6.53%. Given the uncertainty around market rents and the DOM, the Section 8 scenario provides a stable and predictable income stream, albeit at a lower yield. Landlords and small-portfolio investors should weigh the benefits of guaranteed rental income against the potentially higher yields from market-rate rentals when making investment decisions in ZIP 84733.
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.