Updated 2026 · Based on median market data for Salt Lake City, UT
The median monthly rent in Salt Lake City, UT is $1,600, translating to $19,200 in annual gross rental income per unit. The rent-to-price ratio is 0.29% — well below the 1% rule, making pure cash flow investing challenging at median prices and requiring investors to target below-median purchases or value-add strategies. For context, a 0.29% rent-to-price ratio means that for every $100,000 invested in property, you collect approximately $286/mo in gross rent. The gross rent multiplier of 29.2x means it takes 29.2 years of gross rent to equal the purchase price — a high ratio that reflects price appreciation outpacing rent growth.
Renters in Salt Lake City spend approximately 28% of the local median household income ($68,500) on rent. This is within the healthy 25-30% range, indicating rent is affordable relative to local incomes. There may be room for moderate rent increases, especially for updated or well-located units. The 30% affordability ceiling suggests maximum supportable rent of approximately $1,713/mo — that is $113/mo above current median rent.
The vacancy rate in Salt Lake City is 4.2%. This is extremely tight — expect strong tenant demand, quick lease-ups, and leverage to set favorable lease terms. In markets this tight, landlords often see multiple applications per listing and can be highly selective on credit scores and income verification. You can also justify annual rent increases of 3-5% without significant pushback. Population growth of 1.4% annually is actively adding rental demand, creating a tailwind for landlords.
Salt Lake City's GRM (price divided by annual rent) is 29.2x. A GRM above 16x means the property is expensive relative to its income. Investors here are typically betting on appreciation rather than current cash flow, which adds risk if the appreciation thesis does not materialize. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x. To beat Salt Lake City's median GRM, target properties where you can achieve rents above $1,600 through renovations, better marketing, or targeting underserved tenant segments — or buy at a discount to the $560,000 median price. Every point lower on GRM translates to roughly 0.5-0.8% improvement in your cap rate.
At the median rent of $1,600/mo, a single-family rental in Salt Lake City generates approximately $19,200 in gross annual income. After accounting for 4.2% vacancy ($806 lost), property taxes of $3,248, insurance (~$2,240), and maintenance (~$2,240), the estimated NOI is $10,666 per year, or $889/mo. Adding an 8% management fee ($1,536/yr) reduces investor cash flow further. Before debt service, you are looking at approximately $9,130/yr in landlord net income. Whether this is attractive depends on your total capital invested — at a $112,000 down payment, the unlevered yield on equity from NOI alone is 9.5%.
Rent growth in Salt Lake City is driven by the interplay of population growth (1.4%), income growth, and housing supply constraints. Moderate population growth of 1.4% supports steady rent increases of approximately 2.5% per year. That trajectory takes today's $1,600/mo to $1,723 in 3 years and $1,810 in 5 years. The affordability headroom of $113/mo between current rents and the 30% income threshold offers some room for increases, though landlords should be strategic about timing and magnitude.
The median income of $68,500 supports a mixed tenant base of young professionals, small families, and long-term renters. The larger population base of 204,657 gives you a deeper tenant pool to draw from, reducing re-leasing time.
As a mid-sized market, Salt Lake City has property management options but less competition among PMs. Expect fees of 8-12% of collected rent. At $1,600/mo, budget $160/mo for management. Self-management makes sense if you are local, have fewer than 5 units, and the rent level justifies your time — at $1,600/mo per unit, the income per unit is high enough that professional management is clearly affordable and preserves your time for deal sourcing.
Salt Lake City vs Utah state average and national average across key investment metrics. Salt Lake City's cap rate is below both benchmarks — deal sourcing is critical here.