Location: San Juan County, UT | Metro: Farmington, NM MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $2,050 |
| 5 Bedrooms | $2,378 |
| 6 Bedrooms | $2,663 |
| 7 Bedrooms | $2,876 |
| 8 Bedrooms | $3,020 |
U.S. Census Bureau data (2024)
The ZIP code 86514 presents several challenges for landlords considering Section 8 investments. Firstly, the tenant turnover rate can be higher due to the significant gap between the market rent at $929 and the Fair Market Rent (FMR) for FY 2024, which is set at $1140. This discrepancy indicates that tenants might struggle to find non-subsidized housing within their budget, leading to higher instability and potential frequent changes in occupancy.
Vacancy exposure is another concern, especially since the average days on market (DOM) is not available. Without this information, it's difficult to predict how long a property might remain unoccupied, increasing the risk of financial loss during periods when no rent is collected.
The deferred maintenance exposure is also notable. Given the median income of $47,917, residents may have limited funds to cover maintenance costs, even with subsidies. This situation can lead to higher-than-average repair and maintenance expenses for landlords, particularly if they inherit properties in poor condition.
However, these risks must be weighed against the high renter share of 31.6%. A larger proportion of renters typically translates into greater demand for rental properties, including those accepting Section 8 vouchers. This demand can help mitigate some of the risks associated with tenant turnover and vacancy rates.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 86514 is moderate. While there are significant challenges, the high demand for rentals provides a stabilizing factor that can offset some of the inherent risks.
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.