Location: Bingham County, ID | Metro: Idaho Falls, 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 | $940 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $990 | $226,558 | 0.44% | F |
| 2BR | $1,180 | $259,612 | 0.45% | F |
| 3BR | $1,640 | $340,226 | 0.48% | F |
| 4BR | $1,980 | $375,037 | 0.53% | F |
| 5BR | $2,297 | $474,346 | 0.48% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in ZIP 83402 in Idaho Falls, ID, under the Section 8 program are significant. Tenant turnover poses a substantial risk due to the discrepancy between the market rent of $1,352 and the Fair Market Rent (FMR) set at $970 for FY 2024. This gap can lead to higher turnover rates as tenants seek to maximize their housing benefits, resulting in frequent vacancies and increased administrative costs.
Vacancy exposure is another critical concern. With an average Days on Market (DOM) of 42 days, landlords face a period during which the property is unoccupied, leading to lost rental income. The extended vacancy period can be particularly challenging when considering the deferred maintenance exposure. Given the typical home value of $363,289 and a median household income of $74,517, landlords must ensure that properties meet the necessary standards for occupancy without incurring excessive repair costs. The financial burden of maintaining a property to Section 8 standards while earning only $970 per month can strain cash flow and limit the ability to reinvest in property improvements.
However, these risks must be weighed against the high concentration of renters in the area. With 36.1% of residents being renters, there is a strong likelihood of robust demand for housing vouchers. High renter density generally translates into a larger pool of potential voucher holders, increasing the chances of finding qualified tenants who can stabilize occupancy and reduce the impact of vacancy periods.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.