Location: Carbon County, WY | Metro: Carbon County, WY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,120 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 82327 reveals some interesting insights. To begin with, the Fair Market Rent (FMR) for a 2-bedroom apartment in the metro area for fiscal year 2026 is set at an annualized rate of $1,190. This figure can be used to estimate the potential rental income for properties under the Section 8 program.
In terms of the implied gross yield based on the annualized FMR, we calculate it as follows: taking the median home value of $114,555, the gross yield would be approximately 1.04%. This calculation is derived from the formula: (Annualized FMR / Median Home Value) * 100 = Gross Yield. In this case, ($1,190 / $114,555) * 100 ≈ 1.04%.
However, the market rent for ZIP 82327 is listed as N/A, which complicates the analysis. If we were to consider a hypothetical market rent that reflects a more typical yield, say 5%, the gross yield would imply a market rent of about $5,727.50 annually. This is calculated using the formula: (Median Home Value * Hypothetical Gross Yield) / 12 months = Monthly Market Rent. Here, ($114,555 * 0.05) / 12 ≈ $477.29 monthly, or $5,727.50 annually.
Given the renter density of 21.8%, it is evident that the majority of residents in ZIP 82327 are homeowners rather than renters. This suggests that the market rent scenario is more reflective of the broader housing market dynamics. The N/A-day DOM (days on market) indicates insufficient data for a precise assessment of how quickly homes are selling, but it typically points to either a very efficient or inefficient market, depending on the context.
The gross yield comparison between the Section 8 FMR and a typical market rent scenario is stark. At 1.04%, the Section 8 scenario offers a significantly lower gross yield compared to the hypothetical 5% market rent scenario. For investors, especially those with a small portfolio, the decision to participate in the Section 8 program versus renting at market rates should be carefully considered, given the substantial difference in potential returns.
While the Section 8 program provides stability and a guaranteed tenant through government subsidies, the lower gross yield means that other factors such as property management costs and maintenance expenses will have a more pronounced impact on net operating income. Therefore, for ZIP 82327, the market rent scenario appears more realistic for achieving a higher gross yield, assuming the local market supports such rents.
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.