Location: Sweetwater County, WY | Metro: Sweetwater County, WY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 82322 reveals interesting insights into potential investment opportunities for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area for fiscal year 2026 is set at $960 annually. This figure represents the maximum amount that a Section 8 tenant can be expected to pay towards their housing costs, based on the metro area's FMR. When compared to the Census ACS-reported market rent of $719 annually, the disparity highlights two distinct scenarios for gross yield.
In the case of Section 8 participation, the annualized rent would align with the $960 FMR. However, the median home value is not available, which complicates a direct comparison between rental income and property value. Despite this, the higher annualized rent under Section 8 suggests a potentially higher gross yield when compared to the lower market rent scenario. For instance, if we assume a property value of $100,000 (a hypothetical figure used for illustrative purposes due to the unavailability of median home values), the gross yield for Section 8 would be approximately 9.6%, while the market rent scenario would imply a gross yield of around 7.2%. These figures are derived by dividing the annual rent by the assumed property value.
Given the 26.3% renter density in ZIP 82322, it is important to consider the demand for rental properties. This percentage indicates a moderate reliance on rentals, suggesting that there is a steady but not overwhelming need for affordable housing options. The days-on-market (DOM) figure is also not available, which typically provides insight into how quickly properties are rented out. Without this data, it is difficult to ascertain the speed at which a property might be occupied, but the higher rent under Section 8 could attract a more stable tenant base.
Based on these figures, the Section 8 scenario appears more realistic for achieving a higher gross yield, assuming the property value remains constant. Landlords and investors should weigh the benefits of higher guaranteed income against the administrative complexities of participating in the Section 8 program. While the market rent scenario offers a lower gross yield, it may present less bureaucratic hurdles and flexibility in terms of tenant selection.
Investors must also consider the long-term implications of each scenario. The stability provided by Section 8 tenants could offset the initial setup costs and ongoing administration, making it a viable option for those seeking consistent cash flow. Conversely, the market rent scenario might offer more flexibility in adjusting rents over time, depending on the local economic conditions and demand for rental properties.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.