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 | $1,140 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,690 |
| 5 Bedrooms | $3,120 |
| 6 Bedrooms | $3,494 |
| 7 Bedrooms | $3,774 |
| 8 Bedrooms | $3,963 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,260 | $491,557 | 0.26% | F |
| 2BR | $1,650 | $883,126 | 0.19% | F |
| 3BR | $2,280 | $1,681,582 | 0.14% | F |
| 4BR | $2,690 | $3,264,046 | 0.08% | F |
| 5BR | $3,120 | $5,662,632 | 0.06% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 83353, Sun Valley, ID, hinges on two primary factors: the Fair Market Rent (FMR) for a 2-bedroom unit and the market rent. For fiscal year 2026, the annualized FMR for a 2BR in the metro area is $1,830. Given the median home value of $1,236,444, the implied gross yield from the FMR is approximately 0.15%. This calculation is derived by dividing the annual rent by the property value.
In contrast, when considering the market rent, which is currently not available (N/A), it's essential to recognize that the actual gross yield could be significantly higher if market rents exceed the FMR. However, the lack of specific market rent data makes it impossible to provide an exact figure for this scenario.
Given the 9.5% renter density in Sun Valley, the likelihood of securing long-term Section 8 tenants is relatively low compared to areas with higher rental populations. This suggests that relying solely on the FMR for investment returns might not be prudent. The average days on market (DOM) being N/A also implies a robust seller's market where homes are likely selling quickly, potentially before rental considerations come into play.
The disparity between the FMR-based gross yield and what could be achieved with market rents underscores the importance of understanding local rental dynamics beyond just the FMR. While the FMR provides a baseline for subsidized housing, it does not reflect the potential income from market-rate rentals. Therefore, for ZIP 83353, focusing on market rents would offer a more accurate and higher gross yield, making it a more realistic investment scenario for landlords and small-portfolio investors.
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.