Location: Garfield County, UT | Metro: Garfield County, UT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,120 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 84736 reveals a significant gap between the Fair Market Rent (FMR) set at $1,290 for the fiscal year 2026 and the actual market rent of $550 based on recent Census ACS data. This discrepancy stands at $740, or approximately 65%, which underscores the financial dynamics landlords and small-portfolio investors face in this area.
Given that the FMR exceeds the market rent, it positions voucher tenants as a key component of a yield play strategy. Landlords can capitalize on this situation by renting units to Section 8 tenants at the higher FMR rate, thereby securing a more substantial monthly income than what the open market currently offers. This is particularly advantageous given the limited number of renters in the area—only 15.2%—and the low median income of $49,375, suggesting that many potential tenants would struggle to afford rents at the FMR level without government assistance.
The high FMR relative to market rent also means that landlords can potentially avoid the volatility associated with market-rate fluctuations. Instead, they receive a guaranteed income tied to the FMR, which is adjusted annually by the U.S. Department of Housing and Urban Development (HUD). This stability can be beneficial for long-term investment planning, especially when the median home value is listed as N/A, indicating either a lack of available data or an absence of a significant number of owner-occupied homes in the area.
However, accepting Section 8 tenants comes with its own set of considerations. The cost of managing these units includes adherence to HUD standards, which might require additional maintenance or upgrades to meet eligibility criteria. Furthermore, landlords must navigate the administrative processes involved with the Section 8 program, including regular inspections and reporting requirements.
In summary, the gap between FMR and market rent in ZIP code 84736 presents a clear opportunity for landlords to enhance their rental yields through participation in the Section 8 program. The economic context of the area, characterized by a low percentage of renters and a modest median income, supports this thesis, making voucher tenants a viable option for maximizing returns while providing affordable housing solutions.
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.