Location: Sheridan County, WY | Metro: Sheridan County, WY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 82842 centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area as of fiscal year 2026 is set at $1,130. However, the current market rent is listed as N/A, which means we have to rely solely on the FMR figure for our evaluation.
Given that the FMR exceeds the unknown market rent, it is evident that landlords and small-portfolio investors can leverage the Section 8 program to secure a steady rental income. The federal government pays a significant portion of the rent for qualified voucher holders, ensuring a reliable cash flow even if the market rents are lower. This makes properties in ZIP 82842 a compelling yield play for investors who are willing to accept Section 8 tenants.
In ZIP 82842, only 18.3% of residents are renters, indicating a primarily owner-occupied community. Despite this, the median home value stands at $450,044, and the median household income is $105,859. These figures suggest a relatively affluent area where the cost of living is higher, but the availability of rental units is limited. Therefore, the presence of Section 8 vouchers can be advantageous for both tenants seeking affordable housing and landlords looking to fill vacancies with guaranteed payments.
Investors should note that while the FMR of $1,130 provides a benchmark, the actual market rent being below this figure could mean accepting a rate that is lower than what the market might otherwise support. This gap represents a trade-off: while the guaranteed payment reduces risk, it also caps potential earnings. For example, if the current market rent were hypothetically $900, the gap would be $230, or approximately 25%, indicating how much below the FMR the market rent sits.
To summarize, the FMR of $1,130 in ZIP 82842, in conjunction with the limited rental market share and high median home values, makes the acceptance of Section 8 tenants a strategic choice for yield-focused investors. It offers a balance between risk mitigation and income generation, particularly in an area where rental options are less common and the cost of living is high.
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.