Location: Bingham County, ID | Metro: Bingham County, ID
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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $279,741 | 0.36% | F |
| 3BR | $1,410 | $351,708 | 0.4% | F |
| 4BR | $1,700 | $393,966 | 0.43% | F |
| 5BR | $1,972 | $504,142 | 0.39% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 83221 (Blackfoot, ID) provides valuable insights into investment potential. Using the annualized Fair Market Rent (FMR) for a 2-bedroom unit at $970 and the Zillow Observed Rent Index (ZORI) at $1,164, we can derive the gross yields relative to the median home value of $370,959.
In the scenario where the 2BR rental income is based on the FMR, the annual rent would be $11,640 ($970 x 12 months). This translates to an implied gross yield of approximately 3.14%. The calculation is straightforward: divide the annual rent by the median home value. Specifically, $11,640 / $370,959 = 0.0314, or 3.14%.
Alternatively, if the rental income is based on the market rate indicated by the ZORI, the annual rent would be $13,968 ($1,164 x 12 months). This scenario implies a gross yield of about 3.77%, calculated as $13,968 / $370,959 = 0.0377, or 3.77%.
Given the 20.7% renter density and a 57-day Days on Market (DOM), the market rent scenario appears more realistic. A higher renter density suggests a stronger demand for rentals, and a DOM of 57 days indicates that properties are moving relatively quickly. These factors support the likelihood of achieving closer to the market rate rather than the subsidized FMR rate.
The difference between the two gross yields, 3.14% and 3.77%, is significant enough to influence investment decisions. For landlords and small-portfolio investors, aiming for the higher gross yield through market-rate rentals would likely be more profitable, considering the strong local rental market dynamics.
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.