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 | $1,260 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,660 | $381,450 | 0.44% | F |
| 3BR | $2,180 | $516,254 | 0.42% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 84781, Pine Valley, UT, reveals some interesting dynamics when comparing Federal Market Rent (FMR) to median home values. For a two-bedroom unit, the annualized FMR for FY 2024 is $13,320 ($1110 per month), while the median home value stands at $488,611.
The implied gross yield based on the FMR can be calculated by dividing the annual rental income by the median home value. This gives us a gross yield of approximately 2.73%. The formula is as follows:
Gross Yield = (Annual Rental Income / Median Home Value)
However, the market rent is listed as N/A, which complicates the direct comparison. Assuming that market rents are higher than FMRs, let's consider a hypothetical scenario where the market rent for a two-bedroom unit could be around $1,500 per month, leading to an annual rental income of $18,000. This would result in a gross yield of about 3.69% when compared to the median home value.
To summarize, using the FMR for a two-bedroom unit in ZIP 84781, the gross yield is 2.73%, whereas assuming a market rent of $1,500 per month, the gross yield jumps to 3.69%. Given the 0.0% renter density and the lack of data regarding days on market (DOM), the FMR-based gross yield appears more realistic. Investors should note that these yields do not account for operating expenses, vacancy rates, or other factors that affect net operating income (NOI).
The lower gross yield derived from FMR reflects the limited rental market activity in Pine Valley, UT. With zero percent of the population being renters, landlords might face challenges in finding tenants who qualify for Section 8 housing assistance. Therefore, the FMR-based yield provides a conservative estimate for potential investors considering properties in this area.
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.