Section 8 Fair Market Rent (FMR) for ZIP 83401 - 2027

Investment Score for ZIP 83401

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,030
1 Bedroom	$1,080
2 Bedrooms	$1,290
3 Bedrooms	$1,790
4 Bedrooms	$2,160
5 Bedrooms	$2,506
6 Bedrooms	$2,807
7 Bedrooms	$3,032
8 Bedrooms	$3,184

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,290	$259,515	0.5%	F
3BR	$1,790	$369,540	0.48%	F
4BR	$2,160	$395,605	0.55%	F
5BR	$2,506	$498,239	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 83401 (Idaho Falls, ID) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 83401 in Idaho Falls, Bonneville County, is set by HUD for 2026. The FMRs are as follows: - 0BR: $1050 - 1BR: $1120 - 2BR: $1330 (which represents 20.3% of the median household income) - 3BR: $1850 - 4BR: $2230 These FMRs are used to determine the maximum rent that can be charged to tenants using Section 8 vouchers. However, it's important to understand how these FMRs compare to actual rents in the area. According to Zillow, the median price for a 2BR home in this ZIP code is $256,323. This translates into a price-to-FMR ratio of 16.1x, which means that the median home price is significantly higher than the FMR for a 2BR unit. For voucher holders, this creates a significant constraint. They would only be able to afford units priced at or below the FMR, which is much lower than the typical market rates. This could limit their housing options, especially if they are looking for larger units like 3BR or 4BR homes. #### Affordability & Renter Profile In ZIP code 83401, 24.7% of the population are renters, indicating a moderate rental market presence. With a median household income of $78,497, the affordability of housing is a critical issue for many residents. The FMR for a 2BR unit is $1330, which is indeed affordable for those earning the median income. However, the actual median rent for a 2BR unit is likely higher, given the price-to-FMR ratio of 16.1x. The occupancy rate of 95.5% suggests that the market is relatively tight, with most available units being occupied. This indicates a strong demand for rental properties, but it also means that there is limited supply, which could drive up rents beyond the FMR levels. Given the high price-to-FMR ratio, it's likely that many renters are paying more than the FMR, making it challenging for Section 8 voucher holders to find suitable housing. #### Investor Angle From an investor perspective, the ZIP code 83401 presents both opportunities and challenges. The FMRs provide a benchmark for what the government will subsidize, but the actual market rents are much higher. For instance, a 2BR unit priced at $1330 per month would be considered cash-flow positive for an investor, especially if they can leverage the higher median home price of $256,323 to secure financing at favorable terms. However, the investment grade for this ZIP code depends on several factors, including the ability to attract and retain tenants who are willing to pay market rates. Given the tight market conditions and the high demand for rental properties, investors might find it easier to fill units. But they should be prepared for competition from other landlords who may offer amenities or features that Section 8 voucher holders cannot afford. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Since the FMR for smaller units (0BR and 1BR) is lower compared to the median home price, investors should consider focusing on developing or acquiring smaller units. For example, a 0BR unit with an FMR of $1050 might be easier to manage and could still generate positive cash flow due to the high demand for rentals in the area. 2. **Offering Amenities**: To attract tenants who are willing to pay above the FMR, investors should consider offering additional amenities such as parking spaces, laundry facilities, or modern appliances. These amenities can help justify higher rents and make the property more attractive to non-voucher holders. 3. **Rent Stabilization Policies**: Investors should be aware of any local rent stabilization policies that might affect their ability to charge market rates. If such policies are in place, they could impact the profitability of investments in this ZIP code. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 83401 is **Skip**. While the median household income supports affordability at the FMR level, the actual market rents are significantly higher, making it difficult for voucher holders to find suitable housing. Additionally, the tight market conditions and high demand for rental properties suggest that non-voucher holders are more likely to pay market rates, reducing the pool of potential Section 8 tenants. Therefore, unless investors can develop or acquire properties that cater specifically to the needs of Section 8 voucher holders at or below the FMR, this ZIP code may not be the best choice for such investments.

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.