Analyzing Utah Multifamily Deals

Utah's Wasatch Front — Salt Lake, Utah, Davis, and Weber counties — has one of the tightest multifamily markets in the country. Cap rates are compressed, but rent growth, in-migration, and ADU-friendly zoning still create opportunities for investors who underwrite carefully. This guide walks through the metrics we use on every deal listed at UtahInvestor.com.

1. Start with gross yield, not cap rate

Most Utah listings won't publish actual rents. Our estimated gross yield uses HUD Fair Market Rents combined with RentCast market data to project annual gross rental income, then divides by the list price. It's the fastest way to filter out overpriced deals before you spend time on a full proforma.

• Under 5%: Rare in Utah unless the deal has meaningful upside (value-add, ADU, rent bump).
• 5%–7%: The current Wasatch Front median for stabilized small multifamily.
• 7%+: Worth a closer look — often signals mispricing, an off-market opportunity, or a property with correctable vacancy.

2. Run a proforma to get to cap rate and cash-on-cash

Gross yield gets you to a shortlist. To rank the shortlist, run the built-in proforma calculator on the listing page. It converts gross income to NOI by applying realistic Utah expense ratios (property taxes, insurance, maintenance, management, vacancy) and then layers your financing assumptions on top to output cap rate, cash-on-cash return, and DSCR.

Two Utah-specific defaults to double-check every time:

• Property taxes: Utah's primary-residence exemption doesn't apply to non-owner-occupied units, so taxes on a rental are roughly 55% higher than the "residential" figure shown on county assessor sites.
• Insurance: Small multifamily along the Wasatch Front is running $650–$1,100 per unit per year depending on age and roof condition.

3. Look for ADU and second-kitchen upside

Salt Lake City, Ogden, Provo, and a growing list of Utah cities now allow internal ADUs by right on most single-family and duplex lots. Filter for ADU potential or second kitchen in our search to surface properties where you can add a legal unit without a full conversion.

4. Stress-test the exit

A deal that pencils at today's rates rarely pencils at a 100 bp higher exit cap. In the proforma, model a Year 5 sale at both flat and +100 bp cap rate expansion. If your IRR still clears your required hurdle at the higher exit cap, the deal has real margin of safety.

Ready to run the numbers?

Every listing at UtahInvestor.com ships with a preloaded proforma. Filter by county, unit count, gross yield, and ADU potential to find the deals worth underwriting this week.