Location: Sublette County, WY | Metro: Lincoln 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 | $760 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,380 | $333,989 | 0.41% | F |
| 4BR | $1,650 | $402,327 | 0.41% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 83113 reveals a complex rental market landscape. To understand the potential returns, we must first annualize the figures provided. For a two-bedroom unit, the Fair Market Rent (FMR) set by HUD for fiscal year 2026 is $960 per month, translating to an annual rental income of $11,520. Meanwhile, the market rent based on Census ACS data stands at $794 per month, equating to an annual rental income of $9,528.
The median home value in ZIP 83113 is $322,648. Using this figure, we can calculate the implied gross yield for both the FMR and market rent scenarios. When using the FMR, the gross yield is approximately 3.57%, calculated as follows: $11,520 annual rental income divided by the median home value of $322,648. Conversely, if we apply the market rent, the gross yield drops significantly to about 2.95%, derived from dividing the annual rental income of $9,528 by the median home value of $322,648.
The 28.6% renter density suggests that while there is a substantial portion of renters, the majority of households still prefer homeownership. This dynamic impacts the realism of the gross yields. Given the N/A-day DOM (days on market), it's unclear how quickly properties in this area turn over, which could affect vacancy rates and thus the actual realized gross yield.
In practice, the $960 monthly FMR represents a more optimistic scenario, likely achievable only through Section 8 vouchers. The $794 market rent reflects the current competitive environment and is more probable for long-term stability without government assistance. Therefore, for small-portfolio investors and landlords, the $794 figure offers a clearer picture of sustainable returns, with a gross yield of 2.95%. While the higher FMR might attract some investors due to the 3.57% gross yield, the reliance on government subsidies introduces additional risks and uncertainties into the investment equation.
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.