Location: Box Elder County, UT | Metro: Cassia 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 | $840 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,500 | $366,847 | 0.41% | F |
U.S. Census Bureau data (2024)
The investment landscape for Section 8 properties in ZIP code 83342 presents several challenges that must be carefully considered. Tenant turnover is a significant concern, with the market rent at $729 falling short of the Fair Market Rent (FMR) of $970 for FY 2024. This gap can lead to higher turnover rates as tenants seek more affordable options, impacting stability and increasing management costs.
Vacancy exposure is another critical issue. The days on market (DOM) data is currently unavailable, which suggests potential difficulties in accurately predicting how long a property might remain vacant. This uncertainty can pose a financial risk, especially when coupled with the lower market rent, as it may take longer to secure a tenant, leading to periods without rental income.
The deferred maintenance exposure is substantial in ZIP 83342. With a typical home value of $399,176 and a median income of $56,818, homeowners may struggle to keep up with necessary repairs and upgrades, particularly if they are relying on the lower market rent to cover expenses. This can result in higher maintenance costs for landlords, reducing overall profitability.
However, these risks are balanced by a high concentration of renters in the area, with 22.5% of the population being renters. High renter density typically correlates with greater demand for housing vouchers, which can provide a steady stream of tenants through the Section 8 program. This demand helps mitigate some of the risks associated with vacancy and turnover, ensuring a consistent tenant pool.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter share in ZIP 83342 makes it a moderate risk for first-time Section 8 landlords. The demand for subsidized housing can offset some of the operational risks, but careful management and preparation for potential higher maintenance costs are essential.
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.