Location: St. George, UT | Metro: St. George, UT MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,870 | $539,435 | 0.35% | F |
| 4BR | $2,370 | $645,595 | 0.37% | F |
U.S. Census Bureau data (2024)
The analysis for ZIP code 84774 reveals a specific rental landscape that impacts the potential returns for landlords and small-portfolio investors interested in Section 8 properties. The Federal Market Rent (FMR) for a 2-bedroom apartment in this area for FY 2024 is set at $1250 per month. Annualizing this figure yields a gross income of $15,000 per year.
In contrast, the market rent based on Census ACS data stands at $946 per month. This translates into an annual gross income of $11,352 when annualized. Comparing these two figures provides insight into the potential gross yield for Section 8 versus market-rate rentals.
To calculate the gross yield, we use the median home value of $593,428 as a reference point. For the Section 8 scenario, the annualized FMR of $15,000 divided by the median home value gives us an implied gross yield of approximately 2.53%. On the other hand, the market rent scenario, with an annualized income of $11,352, results in an implied gross yield of about 1.91%.
The higher gross yield in the Section 8 scenario makes it more attractive compared to market-rate rentals. However, the decision must also consider the local rental market dynamics. In ZIP 84774, the renter density is relatively low at 9.4%, indicating that there may be fewer tenants available in the broader rental market. This factor supports the reliability of Section 8 rents, as they are guaranteed by the government, making them less susceptible to the fluctuations seen in the general rental market.
The lack of specific data on Days on Market (DOM) suggests that the rental market turnover might be slower, which could affect the overall investment strategy. Given the low renter density and the guaranteed nature of Section 8 rents, the $1250 monthly rate, leading to a 2.53% gross yield, is more realistic for potential investments in this ZIP code. This scenario ensures a steady cash flow and reduces the risk associated with finding and retaining tenants in a market with limited demand.
While the market rent scenario offers a lower gross yield, it is still a viable option for investors who are willing to manage the risks associated with tenant availability and market volatility. Nonetheless, for those looking for a safer and more predictable investment, the Section 8 option with its higher gross yield is the preferred choice in ZIP 84774.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.