Small Multifamily Near Glenwood: Investor Guide

Looking at a duplex or small multiplex near Glenwood and wondering if the numbers work in a rural market? You are not alone. With Glenwood’s small-town feel and Richfield’s regional pull, small multifamily can be a smart play if you underwrite conservatively and clear local permitting hurdles. In this guide, you’ll learn how to size demand, check zoning and utilities, pick financing, and pressure test returns for 2–4 units around Glenwood. Let’s dive in.

Why the Glenwood area works for small multifamily

Market scale and renter demand

Glenwood is very small, so you should evaluate demand using the broader Sevier County and Richfield market. County population is roughly 22 to 22.5 thousand, with median household income reported in recent estimates in the low to mid 70s. See the latest demographics in the Sevier County QuickFacts tool from the U.S. Census. Census QuickFacts for Sevier County

Richfield functions as the county’s employment and service center. That means most renter demand near Glenwood will come from Sevier Valley jobs, services, and local households rather than urban in‑migration.

Rent and price context

For underwriting, HUD Fair Market Rents provide a conservative baseline for the Richfield and Sevier area. 2025 FMRs are approximately: studio $640, 1‑bed $817, 2‑bed $933, 3‑bed $1,213, 4‑bed $1,393. HUD FMR reference for Richfield area

Market trackers show small-market home values in Sevier County ranging from the mid 300s to low 400s, with county median list prices around 380 to 450 thousand in late 2024 and 2025 reports. Use recent MLS comps for precise pricing when you underwrite.

Zoning and utilities you must confirm

Who regulates what

Glenwood is an incorporated town within Sevier County. Many land use and development rules that affect small multifamily are administered by the county. Do not assume multifamily is allowed on a given lot. Confirm zoning, setbacks, and unit allowances in writing. Sevier County zoning code

Critical contacts and questions

Start with Sevier County Planning and Zoning to verify permitted uses, minimum lot size, parking, and whether multiple dwellings are allowed on the parcel. Ask for a zoning confirmation letter. Planning and Zoning contact

If the property is not on municipal sewer, coordinate early with Central Utah Public Health for septic capacity and approvals. Septic systems can limit bedroom count and total units. Central Utah Public Health Department

Water, sewer, septic, and fire access

Before you model a conversion or add units, confirm culinary water capacity, sewer availability, septic design limits if off‑sewer, and any fire access or hydrant requirements tied to building code or insurance. If a property lies in a FEMA special flood hazard area, budget for flood insurance and lender requirements. FEMA Flood Map Service Center

Financing options for 2–4 units

Live‑in investor paths

FHA allows owner‑occupants to buy 2 to 4 unit properties with as little as 3.5 percent down, subject to reserves and a self‑sufficiency test for 3 to 4 units. Confirm current county loan limits when you plan. Overview of FHA 2–4 unit rules

Pure investor loans

Conventional investor loans and portfolio products typically require larger down payments and stricter underwriting. Many investors also use DSCR loans that focus on property cash flow and may allow LLC ownership and limited income documentation. Terms vary by lender, so shop for minimum DSCR, reserves, credit score, and LTV. DSCR loan FAQs

Rural and affordable programs

USDA Rural Development offers multifamily programs that support affordable rental housing in eligible rural areas. These programs are structured and competitive, and they are more common for dedicated affordable projects than for private 2–4 unit purchases. USDA multifamily programs

Underwriting the numbers

Start with conservative rents and vacancy

Use HUD FMRs as a conservative rent baseline, then adjust using current local listings and manager input. Consider a vacancy factor of 5 to 10 percent if market evidence is thin. HUD FMR for Richfield area

Key metrics to track

• Gross Rent Multiplier: purchase price divided by gross annual rent.
• Net Operating Income: gross annual rent minus operating expenses, excluding debt.
• Cap rate: NOI divided by purchase price.
• DSCR: NOI divided by annual debt service.

Simple example to stress test

Assume a 3‑unit building with two 2‑beds and one 3‑bed using FMRs: 2 × $933 + $1,213 = $3,079 per month, or $36,948 per year. If the price is $350,000, GRM is about 9.5. With a 50 percent expense ratio, NOI is about $18,474 and the cap rate is roughly 5.3 percent. If annual debt service is $20,000, DSCR is about 0.92, which indicates negative cash flow. This shows why careful rent, expense, and financing assumptions are essential in small markets.

Taxes and insurance checks

Sevier County’s median property tax level is relatively low compared with urban counties, but you should pull the parcel’s actual tax history early in underwriting. Sevier County property tax overview

Confirm hazard and liability insurance quotes, and check flood status. Properties in special flood hazard areas typically require flood insurance with federally backed loans. FEMA flood maps

Step‑by‑step due diligence checklist

1. Confirm zoning and permitted uses for the parcel. Request a written zoning confirmation. County Planning and Zoning

2. Verify utilities. Confirm culinary water, sewer availability, or septic capacity in writing with Central Utah Public Health. Environmental health contact

3. Pull assessor tax history for the parcel and use it in your expense model.

4. Set rents with HUD FMRs as a baseline, then adjust with current local data. FMR reference

5. Obtain insurance quotes, including flood if FEMA maps show a special flood hazard area. FEMA MSC

6. Order inspections. Include full home inspection, septic inspection or load test if applicable, and evaluate roof, HVAC, plumbing, electrical for code compliance.

7. Lock in financing options and pre‑approvals. Compare FHA owner‑occupant, conventional investor, and DSCR terms. FHA overview | DSCR overview

8. Run title and lien checks. Confirm easements, water rights or shares, and other encumbrances common in rural properties.

9. If adding units, map the public process. Estimate timing and hearing schedules for any conditional use or rezoning. Sevier County zoning code

Common risks to plan for

• Zoning or permit risk if the lot is single‑family only or needs a conditional use.
• Utility constraints, especially septic capacity and sewer availability.
• Financing mismatch if owner‑occupant loans are not an option or rates and reserves change.
• Small‑market liquidity at resale, which can extend exit timelines.
• Insurance availability and costs, including wildfire or flood exposure.

How our team helps

You want local clarity and disciplined underwriting. Our team pairs deep Sevier County knowledge with investor‑minded analysis. We help you confirm zoning and utilities, pressure test rents and expenses, coordinate inspections, and compare financing paths that fit your plan. You get boutique responsiveness backed by professional marketing and transaction experience across residential, land, and small multifamily.

Ready to evaluate a duplex or triplex near Glenwood with local data and a clear plan? Reach out to Donavan Allen to get started.

FAQs

Can I use an FHA loan to buy a duplex in Sevier County if I plan to live in one unit?

• Yes. FHA permits 2 to 4 unit purchases with owner‑occupancy and down payments as low as 3.5 percent, with extra reserve and self‑sufficiency rules for 3 to 4 units. FHA overview

How do I confirm if a Glenwood parcel allows a duplex or triplex?

• Contact Sevier County Planning and Zoning for a written zoning confirmation that covers permitted uses, setbacks, parking, and any conditional use requirements. Planning and Zoning contact

What rents should I underwrite for 2–3 bedroom units near Glenwood and Richfield?

• Use HUD Fair Market Rents as a conservative baseline, then adjust using current local listings and manager feedback. 2025 FMRs show about $933 for a 2‑bed and $1,213 for a 3‑bed. HUD FMR reference

Who approves septic capacity for small multifamily near Glenwood?

• Central Utah Public Health handles septic permitting and design approvals, which can limit bedroom count and total units if a lot is not on sewer. Environmental health contact