Location: Twin Falls County, ID | Metro: Boise City, ID HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,510 |
| 5 Bedrooms | $2,912 |
| 6 Bedrooms | $3,261 |
| 7 Bedrooms | $3,522 |
| 8 Bedrooms | $3,698 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 83302 reveals a complex rental market situation due to limited data availability. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area for FY 2024 is set at $1180 per month, annualizing to $14,160. However, the market rent for similar units is not available, making it challenging to draw a direct comparison.
To derive the gross yield, we need to consider the median home value in ZIP 83302, which is also not provided. This lack of data complicates the assessment of potential returns for landlords and small-portfolio investors. Without the median home value, calculating the exact gross yield is impossible, but we can still make some observations based on the existing data points.
In ZIP 83302, the renter density is quite high at 84.6%. This suggests that there is a strong demand for rental properties, which could support higher rents. However, the FMR of $1180 per month for a 2-bedroom unit indicates a government-set limit on what Section 8 tenants can pay, which might constrain the overall rental income potential for landlords participating in the program.
The days on market (DOM) figure is also not available, which would have been useful in assessing how quickly rental units turn over and the level of competition among landlords. Given the high renter density, it's reasonable to assume that turnover might be relatively quick, but this remains speculative without the DOM data.
In conclusion, while the FMR provides a clear benchmark for Section 8-related rental income at $14,160 annually, the absence of market rent and median home value data prevents a precise calculation of the gross yield. Investors should use caution when considering the potential returns, especially if they rely heavily on Section 8 tenants. The high renter density supports the idea of strong demand, but the actual financial performance will depend on the specifics of each property and its location within the ZIP code.
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.