Location: Blaine County, ID | Metro: Blaine 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 | $1,060 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,160 | $568,328 | 0.2% | F |
| 2BR | $1,520 | $876,892 | 0.17% | F |
| 3BR | $1,980 | $1,937,415 | 0.1% | F |
| 4BR | $2,540 | $3,629,976 | 0.07% | F |
| 5BR | $2,946 | $6,459,379 | 0.05% | F |
U.S. Census Bureau data (2024)
The Section 8 rental market analysis for ZIP code 83340, primarily encompassing Ketchum, Idaho, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,550, while the Census ACS data indicates that the current market rent is $1,210. This means that landlords can charge up to $340 more per month through Section 8 vouchers compared to the open market, representing an increase of approximately 28.1%.
This discrepancy makes Ketchum an attractive yield play for voucher tenants. Landlords can benefit from higher monthly rents without having to compete with the local market's lower rates. The FMR exceeds the market rent, which allows properties to be rented at a rate that is both above the average local rent and within the bounds of what voucher programs will cover. This situation creates an opportunity for landlords to generate higher returns on their investments.
In Ketchum, where 27.2% of residents are renters, the median home value stands at $1,563,483 and the median household income is $93,556. These figures highlight the relatively high cost of living in the area, which can make it challenging for low-income renters to find affordable housing. However, the Section 8 program helps bridge this affordability gap by subsidizing rents for eligible tenants.
The cost of housing voucher tenants below open-market rates is negligible in this case, as the FMR is designed to reflect the 40th percentile of market rents for standard-quality rentals. This ensures that voucher holders can access a range of housing options that are typically available to the broader population. For landlords, accepting Section 8 vouchers in ZIP 83340 can mean a steady, government-backed income stream that is higher than the prevailing market rate, making it a sound investment strategy.
To summarize, the $340 difference between the FMR and market rent represents a substantial opportunity for landlords in Ketchum, Idaho. This gap translates into a 28.1% premium over the current market rate, offering a compelling reason to consider accepting Section 8 vouchers. Given the high median home values and median incomes in the area, the demand for subsidized housing remains strong, ensuring a stable tenant base.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.