Location: Lincoln County, WY | Metro: Lincoln County, WY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,080 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 83118 for fiscal year 2026 is set at $1,420 per month. However, the actual market rent is not available, complicating a direct comparison.
To derive the cap rate, we first need to annualize the FMR and market rent figures. The annualized FMR for a two-bedroom apartment would be $17,040 ($1,420 x 12 months).
The implied gross yield using the FMR can be calculated by dividing the annualized FMR by the median home value. In this case, the gross yield would be roughly 3.21% ($17,040 / $530,000). This calculation assumes that the home value accurately reflects the potential rental income of a two-bedroom unit, which may not always be the case due to differences in property types.
Given the lack of market rent data, we cannot calculate an accurate gross yield for comparison. However, it's important to note that the FMR is typically lower than market rents, especially in areas where the housing market is strong. With a 35.2% renter density, it suggests that there is a significant portion of the population seeking rental housing, which could support higher market rents.
The Days on Market (DOM) data is not available, which would have been useful to gauge the speed of transactions in the area. Nevertheless, the low gross yield derived from the FMR implies that Section 8 properties in ZIP 83118 might offer a lower return compared to market-rate rentals. Investors should consider this when evaluating the potential profitability of properties in this ZIP code under the Section 8 program.
In summary, the gross yield based on the FMR is approximately 3.21%, while the absence of market rent data prevents a direct comparison. Given the strong housing market and high renter density, market-rate rentals are likely to provide a higher gross yield, making them a more attractive investment option for landlords and small-portfolio investors.
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.