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 | $1,280 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,200 |
| 4 Bedrooms | $2,740 |
| 5 Bedrooms | $3,178 |
| 6 Bedrooms | $3,559 |
| 7 Bedrooms | $3,844 |
| 8 Bedrooms | $4,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,280 | $177,598 | 0.72% | D |
| 2BR | $1,680 | $311,806 | 0.54% | F |
| 3BR | $2,200 | $462,637 | 0.48% | F |
| 4BR | $2,740 | $615,093 | 0.45% | F |
| 5BR | $3,178 | $819,972 | 0.39% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 84780 in Washington, UT, revolves around the discrepancy between the Fair Market Rent (FMR) set by the government and the actual market rent. For fiscal year 2024, the FMR is established at $1440, while the market rent, measured by the Zillow Rent Index (ZORI), stands at $1876. This represents a gap of $436, or approximately 29%, between what voucher tenants can pay and the open-market rental rates.
In Washington, UT, where 25.3% of residents are renters and the median home value is $544,569, the lower median income of $91,963 indicates that many individuals rely on assistance programs such as Section 8 to secure affordable housing. The FMR being less than the market rent means landlords who accept Section 8 vouchers will be renting their properties at rates below the open-market value, which can impact their bottom line and investment yields.
The cost of housing voucher tenants below open-market rates can be significant for landlords. It means accepting a lower rental rate, which may reduce profit margins. However, there are benefits to consider. Vouchers provide guaranteed payments through the Housing Choice Voucher Program, reducing the risk of unpaid rent and potentially lowering vacancy rates. Additionally, the stability and predictability of these payments can be advantageous in an otherwise volatile rental market.
To put this into perspective, if a landlord rents out a property at the FMR of $1440 instead of the market rate of $1876, they are foregoing nearly $5232 per year per unit. This makes it essential for landlords to carefully weigh the advantages of guaranteed payments against the potential revenue loss. In Washington, UT's context, where the median income is relatively low, the demand for subsidized housing is high, making Section 8 properties attractive to a significant portion of the population.
Despite the gap, Section 8 remains a viable option for landlords looking to tap into a stable tenant pool. It is important, however, to understand the local market dynamics and the implications of renting below market rates when considering this strategy.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.