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 | $950 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $269,700 | 0.44% | F |
| 3BR | $1,650 | $351,204 | 0.47% | F |
| 4BR | $1,990 | $401,925 | 0.5% | F |
| 5BR | $2,308 | $533,568 | 0.43% | F |
U.S. Census Bureau data (2024)
ZIP 83404, located in Idaho Falls, ID, within the Bingham County metro area, offers a strategic fit for a Section 8 portfolio due to its characteristics as an appreciation play. The spread between the Fair Market Rent (FMR) for FY 2024, which is $1,110 for a one-bedroom unit, and the current market rent of $1,477, indicates that properties here can be rented out at rates above the FMR, providing a financial cushion for landlords. This positive spread means that while properties are eligible for Section 8 tenants, they also have potential for higher rental income from other sources.
The median home value in ZIP 83404 stands at $413,387, suggesting a moderate property value in the region. However, the key indicator for appreciation potential is the 0.2% price-cut share, which reflects a low rate of homes needing to be sold at a discount. This statistic points to a stable housing market where property values are likely to appreciate over time, making it an attractive area for investment.
Another factor supporting the appreciation play is the 39-day Days on Market (DOM), indicating that homes in this ZIP code sell relatively quickly. This short DOM period suggests strong demand and liquidity in the housing market, reducing the risk of holding unsold inventory and increasing the likelihood of timely returns on investment.
While the 25.7% renter share and median income of $82,103 might suggest diversity, these factors do not outweigh the appreciation potential. The median income figure implies a middle-class population capable of sustaining housing demand and supporting property value growth. Therefore, ZIP 83404 is best suited as an appreciation play within a Section 8 portfolio strategy, offering both stability and growth opportunities for landlords and small-portfolio investors.
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.