Location: Bear Lake County, ID | Metro: Bear Lake 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 | $790 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $519,047 | 0.2% | F |
| 3BR | $1,430 | $549,265 | 0.26% | F |
| 4BR | $1,740 | $616,365 | 0.28% | F |
| 5BR | $2,018 | $862,024 | 0.23% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Fish Haven, ID (ZIP 83287) might raise several concerns regarding the viability of investing in properties under the Section 8 program. Let's address these points directly with the available data.
Objection 1: Will Fair Market Rent (FMR) of $990 (metro FY 2026) cover the mortgage on a $625,911 home?
The FMR of $990 is unlikely to cover the mortgage on a home priced at $625,911. To understand why, let's consider a typical mortgage scenario. A median-priced home in this area would likely require a monthly mortgage payment well above the FMR. For instance, a mortgage on a $625,911 home at a 4% interest rate over 30 years would result in a monthly payment of approximately $2,950. This amount far exceeds the FMR, indicating that relying solely on FMR rates would not be sufficient to cover the mortgage expenses.
Objection 2: Is there enough renter demand at 6.4%?
The 6.4% rental rate suggests that a relatively small portion of the housing stock is rented out. This could indicate limited demand for rental properties, which might be concerning for an investor looking to maximize occupancy and income. However, it's important to note that the rental rate alone does not provide a complete picture. The actual number of renters and the vacancy rate can offer more insight into the market's absorption capacity. Unfortunately, the data does not specify the total number of units or the vacancy rate, so we cannot definitively assess whether there is enough demand without additional information.
Objection 3: Will vouchers keep pace with N/A market rents?
The data provided does not include specific figures for market rents, making it difficult to compare voucher amounts directly. However, the U.S. Department of Housing and Urban Development (HUD) adjusts FMRs annually to reflect changes in the local housing market. While this adjustment helps ensure that voucher amounts stay relevant, it does not guarantee that they will cover all costs associated with owning a property, especially if the property value is significantly higher than the average in the area. Given the high home price of $625,911 and the relatively low FMR of $990, there is a risk that voucher payments may not keep up with the necessary rental rates to cover mortgage and other costs.
In conclusion, while the Section 8 program offers stability and a guaranteed tenant, the data indicates that investors should be cautious about the potential mismatch between FMR and mortgage costs, as well as the limited rental market presence in Fish Haven, ID. Additional research into local market conditions and vacancy rates would provide a clearer understanding of the investment landscape.
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.