Location: Pocatello, ID | Metro: Pocatello, ID MSA
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 | $1,000 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,990 | $302,758 | 0.66% | D |
U.S. Census Bureau data (2024)
ZIP 83234, located within the Pocatello, ID MSA, serves as a solid cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the substantial spread between the Fair Market Rent (FMR) of $1,100 for the fiscal year 2024 and the current market rent of $889. Landlords can leverage this gap to ensure a consistent and reliable source of rental income, even when participating in the Section 8 program.
The median home value in ZIP 83234 stands at $308,914, which provides a stable foundation for investment properties. Despite the lack of significant appreciation potential, indicated by the N/A% price-cut share and N/A-day Days on Market (DOM), the area offers steady and predictable returns. In the context of Section 8, where rents are typically lower due to government subsidies, the ability to secure a higher-than-average rental income makes this ZIP code an attractive option for maintaining positive cash flow.
Furthermore, the 14.5% renter share and median income of $81,083 suggest a moderate level of economic stability within the community. While this does not necessarily qualify ZIP 83234 as a diversifier, given the relatively high median income, there is a reasonable assurance that tenants will be able to meet their obligations, contributing to the overall reliability of the cash flow.
In conclusion, ZIP 83234 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The $211 difference between the FMR and market rent ensures landlords can maintain a healthy profit margin while still providing affordable housing options through the Section 8 program. This strategic positioning allows investors to rely on a steady stream of income without the need for frequent property turnovers or significant capital improvements.
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.