Location: St. George, UT | Metro: St. George, UT MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,090 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
U.S. Census Bureau data (2024)
If a landlord is considering purchasing a property in ZIP code 84745 (La Verkin, UT) for Section 8 investment, they should follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1310 cover the debt service on a $432,205 property?
No. The FMR of $1310 is insufficient to cover typical debt service costs on a property valued at $432,205. Debt service on such a high-value property would likely exceed this amount, making it financially unfeasible to rely solely on Section 8 income.
2) How does the market rent of $1,392 compare to the FMR?
The market rent of $1,392 is slightly above the FMR of $1310. This indicates that there is potential for higher rental income from non-Section 8 tenants, which could be beneficial if the landlord plans to diversify their tenant base.
3) Is the demand sufficient given that 23.8% of residents are renters and the days on market (DOM) is not available?
It depends. With 23.8% of residents being renters, there is some demand for rental properties. However, without knowing the DOM, it's challenging to assess how quickly rental units are occupied. A low DOM would suggest strong demand, while a high DOM would indicate the opposite.
If the landlord can secure a mix of Section 8 and market-rate tenants, and the DOM for rental properties is relatively low, then the answer might lean towards yes. However, if the landlord is looking to rely solely on Section 8 income, the answer is clearly no due to the inability of the FMR to cover the debt service on a $432,205 property.
In conclusion, purchasing a property in ZIP 84745 for Section 8 investment is not advisable based on the financial parameters alone. Landlords must consider additional factors such as the ability to attract non-Section 8 tenants and the speed at which rental units are typically occupied.
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.