Herriman Real Estate Investment Guide For 2026
A comprehensive resource for investors looking to capitalize on one of the Salt Lake Valley’s fastest growing master planned communities, where newer housing stock, strong family demographics, and ongoing development continue to drive demand for both new construction and established neighborhoods
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In This Guide
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1. Herriman Market Overview
Market Fundamentals
Herriman sits in the southwestern corner of the Salt Lake Valley, nestled against the foothills of the Oquirrh Mountains and Butterfield Canyon. Over the past two decades, Herriman has transformed from a small rural community into one of the fastest growing cities in Utah, driven by master planned development that has filled in much of the land between Riverton and the western mountains. This rapid growth has given Herriman one of the newest housing stocks in the Salt Lake Valley, with continued development still active in the southern portions of the city.
Key economic indicators that define Herriman’s investment case:
- Population: Approximately 60,000 residents, representing one of the fastest population growth rates in the Salt Lake Valley over the past 15 years
- Housing Stock Age: Predominantly built since 2000, with the majority of homes constructed within the last 15 to 20 years
- Median Home Price: Approximately $575,000, offering a meaningful discount to neighboring South Jordan and Riverton
- Employment Access: Bangerter Highway and Mountain View Corridor provide access to the broader Salt Lake Valley employment base
- Recreation Access: Butterfield Canyon and Oquirrh Mountain foothills offer hiking and outdoor recreation
- Build Out Status: Continued active new construction in southern Herriman, with remaining buildable land becoming scarcer each year
Herriman’s economy is closely tied to the broader Salt Lake Valley, with most residents commuting to employment centers in Sandy, Draper, South Jordan, and downtown Salt Lake City via Bangerter Highway and the Mountain View Corridor. The city itself has also seen growth in local retail and services as its population has expanded, particularly around the Herriman Towne Center area.
Herriman’s master planned communities and newer housing stock, set against the Oquirrh Mountains, continue to attract families seeking value within the Salt Lake Valley
2026 Market Outlook
- Continued new construction activity in southern Herriman toward Butterfield Canyon
- Price gap with South Jordan and Riverton expected to narrow as Herriman approaches build out
- Strong family demographic continuing to drive demand for 3-5 bedroom single family homes
- Herriman Towne Center area benefiting from continued retail and amenity development
- Mountain View Corridor improvements continuing to improve commute access to broader Salt Lake Valley
Investment Climate
Herriman’s investment environment rewards buyers who understand the city’s growth trajectory and the relative value it offers compared to its more built out neighbors. Successful Herriman investors tend to share a few characteristics:
- Relative value awareness recognizing that Herriman offers newer housing stock at prices below comparable properties in South Jordan, Riverton, and Draper
- New construction focus particularly in the southern growth corridor, where continued development offers access to modern floor plans at attainable price points
- Family tenant targeting given Herriman’s strong demographic skew toward young families seeking space and value
- Long-term growth orientation understanding that as Herriman approaches its own build out, the price gap with neighboring cities is likely to narrow over time
- Commute corridor awareness recognizing that Bangerter Highway and Mountain View Corridor access are key factors in tenant demand for any given Herriman property
Herriman represents one of the last remaining areas in the core Salt Lake Valley where investors can access genuinely new construction at price points meaningfully below the valley median. As the city’s remaining buildable land diminishes over the coming years, this dynamic is expected to shift, making current pricing relatively attractive for investors with a multi-year holding horizon.
Demographic Trends Driving Demand
- Salt Lake Valley Affordability Migration – Buyers priced out of South Jordan, Riverton, and Draper continue to look toward Herriman for newer construction at lower price points
- Young Family Formation – Herriman’s demographic profile skews heavily toward young families, supporting demand for 3-5 bedroom single family homes with yards
- Southern Growth Corridor Expansion – Continued development toward Butterfield Canyon represents the primary source of new housing supply and investment opportunity
- Retail and Amenity Maturation – As Herriman Towne Center and surrounding commercial areas continue to develop, the city becomes increasingly self-sufficient for daily needs, supporting property values
- Mountain View Corridor Completion – Continued highway infrastructure improvements are gradually reducing commute times to broader Salt Lake Valley employment centers
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2. Neighborhood Hotspots
Herriman Investment Neighborhood Map
Interactive map of Herriman’s investment areas. Green stars show top hotspots, blue circles mark established markets, and orange circles highlight emerging or growth-corridor areas.
Core Investment Areas
Detailed Submarket Analysis: All Herriman Areas
| Area | Price Range | Cap Rate | Growth Drivers | Best Strategy |
|---|---|---|---|---|
| Rosecrest | $525K-$750K | 4.5-5.5% | Established amenities, mature community | Long-term family rental |
| Mountain Ridge | $475K-$675K | 5.0-6.0% | Top rated schools, strong value | School-driven family rental |
| Southern Growth Corridor / Butterfield | $450K-$650K | 5.5-6.5% | Newest construction, continued development | New construction growth play |
| Herriman Towne Center | $475K-$650K | 5.0-6.0% | Retail proximity, walkability | Convenience-focused rental |
| Anthem Park | $500K-$700K | 4.5-5.5% | Community amenities, parks | Family-focused buy and hold |
| Providence | $475K-$650K | 5.0-6.0% | Bangerter access, mixed housing | Balanced cash flow and appreciation |
| Western Springs | $450K-$625K | 5.5-6.5% | New construction, competitive pricing | Value-oriented new construction |
| Rose Canyon | $475K-$675K | 5.0-6.0% | Bangerter Highway proximity | Commuter rental, balanced strategy |
Expert Insight: “The thing investors need to understand about Herriman is timing relative to its neighbors. Ten years ago, South Jordan and Riverton looked a lot like Herriman does today: newer construction, attainable prices, and continued development. Both of those cities have since built out and seen their price gaps with the broader Salt Lake Valley narrow substantially. Herriman is following a similar trajectory, just a decade behind. Investors who buy in Herriman’s southern growth corridor today are essentially buying into that same narrative, with the southern Butterfield area representing the last wave of genuinely new construction in this part of the valley.” – Jennifer Walsh, Senior Investment Advisor, Southwest Valley Realty Partners
3. Property Types
| Investment Goal | Best Property Type | Best Areas | Minimum Capital |
|---|---|---|---|
| Maximum Cap Rate | New construction townhome or SFH | Southern Growth Corridor, Western Springs | $85,000+ down |
| Established Community Premium | Master planned SFH | Rosecrest, Anthem Park | $95,000+ down |
| School-Driven Family Rental | Single-family home | Mountain Ridge | $90,000+ down |
| Lowest Entry Cost | Townhome | Herriman Towne Center | $75,000+ down |
Don’t guess the costs. Our Complete Renovation & Remodeling Cost Guide covers 400+ pages of project-by-project breakdowns with real contractor pricing ranges.
4. Cost Analysis
Acquisition Cost Breakdown (Herriman)
| Expense Item | Typical Cost | Example ($575,000 Property) | Notes |
|---|---|---|---|
| Down Payment | 20-25% (investment) | $115,000-$143,750 | Conventional investment property financing |
| Closing Costs | 2-3% of price | $11,500-$17,250 | Title, escrow, lender fees, recording |
| Inspection | $400-$650 | $500 | Standard residential inspection, often minimal findings on newer construction |
| Initial Repairs/Updates | 0.5-2% of price | $2,875-$11,500 | Lower than older housing stock given recent construction |
| Reserves (6 months) | 6 months expenses | $12,000-$16,000 | Mortgage, taxes, insurance, maintenance reserve |
| TOTAL MINIMUM ENTRY | ~24-31% of value | $141,000-$178,000 | Assumes conventional investment financing |
Sample Cash Flow Analysis: Southern Growth Corridor New Construction SFH
| Item | Monthly | Annual | Notes |
|---|---|---|---|
| Gross Rental Income | $2,500 | $30,000 | 3BR new construction SFH |
| Vacancy (5%) | -$125 | -$1,500 | Conservative estimate for strong Herriman family rental demand |
| Property Management (8%) | -$200 | -$2,400 | Standard long-term rental management fee |
| Property Taxes | -$269 | -$3,225 | Approximately 0.56% of assessed value for non-primary residence |
| Insurance | -$95 | -$1,140 | Landlord policy for new construction SFH |
| Maintenance Reserve (1% annually) | -$48 | -$575 | Lower than older housing stock given new construction |
| HOA Dues | -$70 | -$840 | Typical master planned community HOA |
| Net Operating Income | $1,693 | $20,320 | Before mortgage |
| Mortgage ($575K purchase, 25% down, 6.75%, 30yr) | -$2,798 | -$33,576 | Principal and interest on $431,250 loan |
| CASH FLOW | -$1,105 | -$13,256 | Before appreciation and equity paydown |
| Cap Rate | 3.53% | NOI / Total Cost | |
| Total Return (12% appreciation) | ~12-14% | Including appreciation and equity paydown |
This example illustrates that even Herriman’s relatively higher cap rate properties run modestly negative on a pure cash flow basis with standard financing, though the gap is notably smaller than in higher-priced Salt Lake Valley submarkets. Total returns including appreciation and equity paydown remain attractive given Herriman’s above-average price growth. Investors with larger down payments, or those purchasing in established neighborhoods like Mountain Ridge with slightly lower acquisition costs relative to rents, can often achieve closer to breakeven or positive cash flow.
Expert Insight: “Herriman is one of the few places left in the core Salt Lake Valley where investors can put down meaningfully less capital and still get genuinely new construction. We’re talking about a difference of $100,000 to $150,000 compared to a similar new home in South Jordan or Draper, for a property that’s renting for maybe 10 to 15 percent less. When you run the numbers on a per-dollar-invested basis, Herriman often comes out ahead, especially for investors who are capital constrained but still want exposure to new construction and a growing submarket.” – Derek Olsen, Investment Specialist, Salt Lake Valley Realty Group
5. Legal Framework
Herriman and Utah Landlord-Tenant Basics
Investors in Herriman operate under Utah’s statewide landlord-tenant framework, which is generally considered landlord-friendly relative to many other states. Key points include:
- Eviction Process: Utah allows a 3-day notice to pay or vacate for non-payment of rent, with a relatively efficient court process for uncontested cases.
- Security Deposits: No statutory cap on security deposit amounts, though deposits must be itemized and returned within 30 days of move-out along with any required documentation.
- Lease Terms: Standard 12-month leases are most common in Herriman given the family-oriented tenant base targeting school year stability.
- Property Tax Exemption: Utah’s primary residence exemption reduces taxable value by 45% for owner-occupied homes; investment properties are taxed on full assessed value.
- HOA Considerations: Most Herriman master planned communities are subject to HOA rules, which may include rental registration requirements or architectural guidelines for exterior modifications.
Herriman-Specific Considerations
Beyond the statewide framework, Herriman investors should be aware of:
- HOA CC&R Review: Given the predominance of master planned communities, HOA documents should be reviewed for any rental restrictions, registration requirements, or caps on the percentage of units that can be rented.
- New Construction Warranty Considerations: For southern growth corridor purchases, verify builder warranty terms and any transferability provisions for rental properties.
- School Boundary Verification: Given Herriman’s family-oriented tenant base, verify specific school assignments as boundaries can shift with continued development.
- Continued Development Impact: Properties near active construction zones in the southern growth corridor may experience temporary construction-related noise or access considerations.
Useful Herriman Resources
- Herriman City: herriman.org
- Salt Lake County Assessor: slco.org
- Jordan School District: jordandistrict.org
- Utah State Tax Commission: tax.utah.gov
| Regulation | Herriman / Salt Lake County Requirement | Utah State Baseline | Investor Impact |
|---|---|---|---|
| Eviction | Follows Utah state process | 3-day notice for non-payment, relatively landlord-friendly | Favorable compared to many other states |
| Security Deposits | No specific local cap | No statutory cap; return within 30 days | Flexibility for landlords on deposit amounts |
| HOA Rental Restrictions | Common across most Herriman master planned communities | N/A | Review CC&Rs before purchase, particularly for rental caps |
| Property Tax | Salt Lake County assessment applies | 45% primary residence exemption does not apply to rentals | Investment properties taxed on full assessed value |
6. Step-by-Step Herriman Investment Playbook
Define Your Herriman Strategy
Herriman’s growth trajectory and newer housing stock support several distinct investment strategies:
Growth Corridor Positioning
Purchase new construction in the southern growth corridor toward Butterfield Canyon, targeting the lowest entry prices in Herriman with continued development providing appreciation upside.
Established Community Hold
Buy in Rosecrest or Anthem Park for properties with proven rental history, mature amenities, and established community identity, targeting long-term tenant stability.
School-Driven Family Rental
Target single-family homes in Mountain Ridge near top rated Herriman schools, appealing to families prioritizing school quality at relatively attainable price points.
Convenience-Focused Townhome
Purchase a townhome near Herriman Towne Center for the lowest entry cost in the city, appealing to tenants seeking walkability to retail and daily amenities.
Build Your Herriman Team
A strong local team helps investors navigate Herriman’s mix of established and rapidly developing submarkets:
- Herriman-Familiar Real Estate Agent: Should understand the distinction between established communities and active development phases, as well as which builders are currently active in the southern growth corridor.
- Property Manager with Southwest Valley Experience: Familiar with the family-oriented tenant pool and standard 12-month lease cycles common throughout Herriman.
- Utah Real Estate Attorney: For entity structuring and HOA document review, particularly important given the predominance of master planned communities.
- Local Lender Familiar with New Construction Financing: Can help navigate builder financing programs and any investor-specific incentives in active development areas.
- Home Inspector with New Construction Experience: For southern growth corridor purchases, an inspector familiar with builder warranty processes is valuable.
Expert Tip: When working with builders in Herriman’s active development areas, ask specifically whether they offer any incentives for investment buyers, such as rate buy-downs or closing cost credits. Some builders run promotions that aren’t widely advertised but can be requested directly, particularly toward the end of a sales phase when they’re motivated to move remaining inventory.
Herriman-Specific Due Diligence
Physical Due Diligence
- New construction warranty status and what remains transferable to a renter-occupied property
- Verification of completed infrastructure (roads, sidewalks, landscaping) in newer development phases, as some elements may be pending at time of purchase
- Foundation and grading inspection for properties in areas with sloped terrain near the Oquirrh foothills
- HVAC and water heater specifications, particularly important given Herriman’s elevation and seasonal temperature swings
Regulatory and HOA Due Diligence
- HOA CC&Rs review for rental restrictions or registration requirements, particularly important given the predominance of master planned communities
- Confirmation of any pending special assessments related to ongoing community development
- School boundary verification for the specific property address, particularly relevant given Herriman’s family-oriented tenant base
- Verification of any planned future development near the property that could affect views or access
Competing in Herriman’s Market
- New construction timing: Builders release new phases of lots periodically; investors should establish relationships with builder sales offices to be notified of upcoming releases before they’re widely marketed.
- Established neighborhood turnover: Homes in Rosecrest and Anthem Park turn over less frequently than newer areas; investors should build relationships with agents who can flag listings early.
- Out of state investor competition: Increased out of state investor activity has added competition for turnkey rental properties, particularly in the southern growth corridor.
- Spring market timing: Like much of the Salt Lake Valley, listings tend to be more competitive in spring as families aim to move before the new school year.
Property Management in Herriman
Long-Term Rental Management Essentials
- Tenant screening focused on income verification given the family-oriented tenant base and standard rent levels
- Lease timing aligned with the school year to minimize vacancy and tenant turnover disruption
- HOA compliance monitoring, particularly important given the predominance of master planned communities with active HOAs
- Coordination with builder warranty processes for newer construction properties during the warranty period
Typical Herriman Management Fees
- Long-term rental management: 8-10% of monthly rent
- Leasing fee: 50-100% of one month’s rent
- Lease renewal fee: $150-$350
- Maintenance markup: 10-15% on contracted repairs through management company
7. Financing Options for Herriman
| Loan Type | Down Payment | Rate Premium | Best For | Herriman Note |
|---|---|---|---|---|
| Conventional Investment Loan | 20-25% | +0.5-0.75% | Most Herriman purchases, well under conforming limits | Herriman’s below-median pricing keeps virtually all properties within conventional limits |
| Builder Financing / New Construction | 5-20% reservation deposit, then standard financing | Varies, sometimes below market with builder incentives | Southern growth corridor purchases | Many builders offer in-house lender incentives, particularly during slower sales periods |
| DSCR Loan | 20-25% | +0.5-1.0% | Investors qualifying based on rental income rather than personal income | Herriman’s relatively strong rent-to-price ratios support DSCR qualification |
| FHA (Owner-Occupant House Hack) | 3.5% | Standard FHA terms | Buyers willing to live in the property initially | Lower entry prices make FHA financing more accessible for first-time investor-occupants |
Herriman Financing Reality: Herriman’s below-median pricing makes it one of the more financing-accessible Salt Lake Valley submarkets, with virtually all properties qualifying for conventional terms and even FHA financing remaining viable for some buyers. New construction buyers should always inquire about builder-affiliated lender incentives, which can meaningfully reduce effective interest rates during active sales periods.
8. Frequently Asked Questions
Knowledge Quiz: Herriman Real Estate Investment
Open Quiz
5 quick questions on what you just learned about Herriman investing
1) Why does Herriman currently offer stronger cap rates than South Jordan and Riverton?
Answer: C
Herriman’s cap rate advantage comes from being earlier in its development cycle than South Jordan and Riverton, allowing investors to access newer construction at a price discount while rents remain only modestly lower, creating a more favorable rent-to-price ratio.
2) Where is Herriman’s newest construction primarily concentrated?
Answer: B
Herriman’s newest construction continues to expand southward toward Butterfield Canyon, representing the primary source of new housing supply in the city.
3) What demographic group makes up the bulk of Herriman’s tenant pool?
Answer: A
Herriman’s tenant pool skews heavily toward young families seeking 3-5 bedroom homes, prioritizing school district assignment, parks, and community amenities.
4) What is a key risk consideration specific to Herriman’s rapid development pattern?
Answer: D
As newer communities mature, HOA dues can increase as infrastructure costs that were initially subsidized by the developer transition to full HOA responsibility, which investors should factor into long-term expense projections.
5) According to the guide’s sample cash flow analysis for a southern growth corridor new construction property, what is the most accurate takeaway?
Answer: B
The sample analysis shows modestly negative cash flow (-$1,105/month) on standard financing, a smaller gap than higher-priced submarkets, with total return including 12% appreciation reaching roughly 12-14%.
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Ready to Invest in Herriman?
Herriman represents one of the last opportunities in the core Salt Lake Valley to access genuinely new construction at prices meaningfully below the broader market median. Its rapid growth, strong family demographics, and continued development in the southern growth corridor toward Butterfield Canyon give investors multiple paths to attractive cap rates and steady appreciation. While the city’s price advantage relative to neighbors like South Jordan and Riverton is expected to narrow as Herriman approaches its own build out, investors who position themselves now in either the established communities of Rosecrest and Mountain Ridge or the active growth corridor stand to benefit from a market that has consistently followed a pattern of steady, family-driven demand and reliable appreciation.
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