Location: Lincoln County, ID | Metro: Jerome County, ID HUD Metro FMR Area
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 | $820 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $270,372 | 0.43% | F |
| 3BR | $1,610 | $368,679 | 0.44% | F |
| 4BR | $1,800 | $434,537 | 0.41% | F |
| 5BR | $2,088 | $557,667 | 0.37% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in Jerome, ID, ZIP code 83338, is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1020, while the Census ACS reports the market rent at $991. This indicates that the FMR is higher than the market rent by $29, which is approximately 2.93%.
This gap makes Jerome an attractive location for a yield play for landlords and small-portfolio investors. The higher FMR means that landlords can potentially charge more for their properties through Section 8 vouchers than they would be able to in the open market. Given that only 23.3% of Jerome residents are renters, the demand for rental properties is relatively low compared to owner-occupied homes, which have a median value of $399,393. This further supports the idea that landlords can leverage the higher FMR to increase their rental yields.
The median income in Jerome is $72,072, indicating that the majority of residents might find it challenging to afford the median home value without significant financial assistance. Therefore, Section 8 vouchers provide a stable and reliable source of rental income for landlords, as voucher tenants are guaranteed a certain level of payment based on the FMR. This stability can offset the lower overall demand for rentals in the area, making it a strategic investment choice for those looking to capitalize on the yield differential.
Investors should be aware that managing Section 8 properties comes with its own set of regulations and requirements. However, the ability to rent at a rate above the local market average, combined with the security of government-backed payments, makes Jerome, ID, a compelling option for those interested in maximizing returns on their rental investments.
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.