Invest In Apartment Buildings In Pleasant Grove, UT

Where Pleasant Grove's Apartment Demand Comes From

Rental demand in Pleasant Grove comes from 3,855 renter households, which is 34% of occupied housing (ACS 2020–2024). Renter households fell 0.9% over five years, close to the population trend (down 1.4%).

The typical Pleasant Grove household earns $101,073 a year, 39.7% more than in the 2015–2019 survey. The number of employed residents fell 2.7% over the same period, and unemployment stood at 2.6%. Rent has risen faster than income (48.3% versus 39.7%), so more tenants are stretched. Well-run older buildings that rent below new construction tend to hold up best in that setting.

Pleasant Grove leans toward ownership. Apartment buildings compete with single-family rentals for tenants, so we look closely at how a property's rents compare with nearby rental houses.

Pleasant Grove Rent Trends And Supply

Median gross rent in Pleasant Grove, UT is $1,689 a month, up 48.3% from $1,139 in the 2015–2019 survey (U.S. Census ACS 2020–2024). Few markets grew rent faster over the period. We still underwrite slower growth from here, because rent spikes tend to cool once new supply catches up.

Rental vacancy is 3.5%, which is tight. Vacant units in Pleasant Grove tend to lease quickly. Census vacancy estimates for smaller places carry wide margins of error, so we check them against current local listings. Only 35.1% of renters spend 30% or more of their income on housing, well below the national share of roughly half. That leaves more room on affordability than most markets have.

About 20% of homes in Pleasant Grove are in buildings with 5 or more units, roughly 2,365 homes. That count was down 15.1% over five years, so new apartment supply has been limited. The median home was built in 1999, so the housing stock is relatively new. Value-add plans here lean more on management and amenities than on heavy renovation. For comparison, HUD's fiscal year 2027 Fair Market Rent for a two-bedroom unit in the Provo-Orem-Lehi, UT MSA is $1,363 a month.

Where Pleasant Grove Stands Among Its Peers

Among the 38 Utah cities we track, Pleasant Grove ranks 16th for median gross rent, 11th for renter share and 11th for five-year rent growth. Its rents fall in the middle of the pack. In raw numbers, Pleasant Grove has about 528 fewer residents, 35 fewer renter households and 421 fewer homes in buildings with 5 or more units than in the 2015–2019 survey. With fewer renter households than before, a building has to win tenants from competitors rather than from new demand.

How Pleasant Grove Compares With Nearby Markets

Pleasant Grove's median gross rent of $1,689 is above the Utah median of $1,496, and its renter share is 34% compared with 29.8% statewide.

Rent Versus Income In Pleasant Grove

The median rent in Pleasant Grove works out to $20,268 a year, about 20.1% of the median household income of $101,073. Under the common 30% guideline, a household needs about $67,600 a year to cover that rent comfortably. That's a heavier load than the Utah average of 18.9%. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

Since the 2015–2019 survey, the median rent rose $550 a month ($6,600 a year), while median household income rose $28,723 a year. Rent has outpaced income, so we are careful about how much further a business plan pushes rents on renewal. HUD's FY2027 Fair Market Rent for a two-bedroom unit, $1,363, is 19.3% below the median gross rent for all unit sizes. That gap matters for buildings that accept Housing Choice Vouchers, since local housing authorities base voucher payment standards on it.

Quick Facts: Pleasant Grove Rental Market

If you only read one part of this page, read this list. Every figure is from the Census Bureau's ACS 5-year estimates.

• Pleasant Grove, UT has 37,852 residents, down 1.4% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Pleasant Grove, UT is $101,073, up 39.7% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Pleasant Grove, UT is $1,689 a month, up 48.3% over five years (U.S. Census ACS 2020–2024).
• 34% of households in Pleasant Grove, UT rent, about 3,855 renter households (U.S. Census ACS 2020–2024).
• 20% of homes in Pleasant Grove, UT are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Pleasant Grove, UT is 3.5%, and 35.1% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Pleasant Grove, UT was built in 1999 (U.S. Census ACS 2020–2024).

What We Look For In A Pleasant Grove Apartment Building

Our buy box in Pleasant Grove is the same one we use nationwide: 5+ unit apartment buildings, stabilized or in need of work, priced on today's rents. Then we test the property against the local data on this page and a full inspection of its major systems.

Property taxes are a big line item for any Utah apartment building. We underwrite the tax bill after purchase, not the seller's current bill, since a sale often resets the assessment. Utah has no statewide rent control law, though local rules on notices, fees and deposits still apply. Insurance quotes in Utah reflect wildfire risk, so we get a quote before we make an offer.

Given how fast rents rose here, we assume much slower rent growth going forward and make sure the deal still works if rents stay flat for a while.

Evaluating Apartment Syndications In Pleasant Grove

Before you invest in an apartment syndication in Pleasant Grove, with us or anyone else, the local data points to a few questions worth asking.

• What vacancy does the plan assume? Rental vacancy in Pleasant Grove is 3.5%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 48.3% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• How big is the repair reserve? The median home in Pleasant Grove was built in 1999, and even newer buildings need money set aside for roofs, HVAC and appliances.
• How will the building hold occupancy? Renter households in Pleasant Grove fell 0.9%, so the plan should show how it keeps units full.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Pleasant Grove Apartment Syndication Works

Here's the short version. The general partner, in this case Skyline, finds an apartment building in Pleasant Grove, buys it with a loan and investor capital, and runs it. Limited partners supply part of that capital and hold an ownership share, without landlord duties or personal liability for the loan.

Expect your money to be tied up for years, with no easy way to sell your share early, and remember that any investment can lose money. Most deals are open only to accredited investors under Rule 506(b) or 506(c). See investing with Skyline Capital for how we work with limited partners.

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