Location: Casper, WY | Metro: Casper, WY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
The analysis for ZIP code 82602 in Unknown, WY, reveals some limitations due to incomplete data, but we can still draw meaningful conclusions regarding the potential Section 8 cap rate.
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 82602 for FY 2024 is set at $1070 per month. This annualizes to $12,840, providing a baseline for rental income expectations under the Section 8 program. However, the market rent for this area is currently not available, making direct comparisons challenging.
To calculate the implied gross yield for the Section 8 scenario, we need the median home value, which is also not provided. Without this figure, we cannot compute an exact cap rate, but we can infer that the gross yield would be relatively low since the FMR is significantly lower than typical mortgage payments on a property of this size. For instance, if we assume a median home value of $200,000 (for illustrative purposes), the gross yield would be approximately 6.42% ($12,840 / $200,000).
Given the lack of market rent data, it's impossible to provide a direct comparison for the gross yield in a non-Section 8 scenario. However, if market rents were higher, the gross yield would naturally increase, making it more attractive for landlords and small-portfolio investors seeking higher returns.
The renter density and Days on Market (DOM) are also not specified, which means we cannot accurately assess the demand for rental properties in this area. Typically, a higher renter density and shorter DOM suggest a more favorable market for rentals, but these factors remain unknown for ZIP 82602.
In conclusion, while the exact cap rate cannot be determined without the median home value, the gross yield for Section 8 properties in ZIP 82602 appears to be modest. Investors should consider this yield in light of the program's guaranteed income and the absence of market rent data before making decisions. The scenario with higher market rents would likely offer a better gross yield and thus be more realistic for those seeking higher returns.
Data Sources: FMR data from HUD (2027).
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.