Location: Twin Falls County, ID | Metro: Twin Falls County, ID HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
U.S. Census Bureau data (2024)
Twin Falls County, ID's ZIP 83321, which falls under the HUD Metro FMR Area, presents a unique opportunity for inclusion in a Section 8 portfolio strategy. This ZIP code stands out primarily as a cash-flow anchor due to the favorable spread between the Fair Market Rent (FMR) set by HUD and the local market rents.
In fiscal year 2024, HUD has determined the FMR for ZIP 83321 to be $1030. However, the current market rent in this area is $925. This means that landlords participating in the Section 8 program can expect to receive a higher rental income compared to the local market rate, providing a stable and predictable cash flow. The $105 difference per month represents a significant premium that can enhance the financial performance of properties in this ZIP code.
The lack of data on median home values and price-cut shares does not detract from the cash-flow anchor potential. Instead, the focus should remain on the steady rental income that Section 8 tenants provide. With a guaranteed payment from the government, landlords can mitigate risks associated with tenant defaults and vacancy rates.
ZIP 83321 also has a 33.3% share of renters, indicating a moderate demand for rental properties. While this does not qualify it as a diversifier in terms of income streams, it does suggest that there is a substantial portion of the population relying on rentals, which supports the viability of the Section 8 program in this area.
The median income of $60,000 further underscores the suitability of this ZIP code as a cash-flow anchor. This income level is consistent with the financial parameters of the Section 8 program, ensuring that there will be a steady pool of eligible tenants. Landlords can confidently invest in properties here, knowing that they are likely to find qualified tenants who will benefit from the subsidized housing and contribute to the landlord's revenue stream without the need for frequent adjustments to market rates.
In conclusion, ZIP 83321 serves best as a cash-flow anchor within a Section 8 portfolio strategy. The $105 monthly premium over market rents ensures that landlords can achieve solid financial returns while the Section 8 program provides a reliable source of income and a stable tenant base.
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.