Location: Sweetwater County, WY | Metro: Sweetwater County, WY
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $880 | $143,096 | 0.61% | D |
| 2BR | $1,000 | $206,689 | 0.48% | F |
| 3BR | $1,280 | $310,655 | 0.41% | F |
| 4BR | $1,670 | $354,737 | 0.47% | F |
| 5BR | $1,937 | $477,349 | 0.41% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $990 for ZIP 82901 in Rock Springs, WY, can sufficiently cover the mortgage on a home priced at $289,214. This concern stems from the fact that mortgage payments are typically higher than rental income. However, the FMR is just one factor in determining profitability. The actual mortgage payment depends on interest rates, down payment, and loan terms. Assuming a typical 30-year fixed-rate mortgage with a 4% interest rate and a 20% down payment, the monthly principal and interest would be approximately $1,200. This means the FMR alone does not cover the mortgage, but it's important to note that property taxes, insurance, and maintenance costs also need to be considered.
The second objection often raised is the relatively low renter demand, indicated by the 26.4% rental occupancy rate. While this percentage suggests that less than a third of the housing units are rented, it's crucial to understand the context. Rock Springs has a population of around 23,000, and the rental market is smaller compared to larger metropolitan areas. However, the rental demand is still significant. A lower occupancy rate could mean more competition among landlords, but it also indicates potential for growth if the supply of rental properties is managed carefully.
The final objection pertains to the ability of Housing Choice Vouchers to keep up with market rents, which are estimated at $1,000. The voucher amount is tied to the FMR, which is set below the market rate. In ZIP 82901, landlords participating in the voucher program must accept the voucher amount as full rent. This can be a challenge if the voucher amount consistently falls short of covering the market rent. However, the voucher program ensures a stable and reliable source of income, reducing the risk of vacancies and non-payment. It's also worth noting that voucher holders often have better credit histories and fewer issues with timely rent payments compared to non-voucher tenants.
To conclude, while the FMR of $990 may not fully cover the mortgage on a home priced at $289,214, it's essential to consider all aspects of investment, including long-term appreciation, tax benefits, and the stability of rental income. The rental occupancy rate of 26.4% suggests a moderate demand, but the local economy and demographics play a role in sustaining this market. Lastly, while vouchers may not match the market rent of $1,000, they offer a dependable stream of income and reduce financial risks associated with traditional renting.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.