Location: Clark County, ID | Metro: Idaho Falls, ID HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The classification of ZIP code 83423 hinges on its financial metrics, particularly focusing on yield and stability. To analyze this area, we must consider the Federal Market Rent (FMR) of $1110 for the fiscal year 2024, the average market rent of $770, and the median home value of $274,725. Additionally, the percentage of renters at 40.6%, the lack of available data on days on market (DOM), and the median household income of $53,472 provide insights into the stability of the rental market.
On the yield axis, the FMR of $1110 is notably higher than the market rent of $770, indicating a potential for higher rental income when properties are leased through the Section 8 program. This suggests that 83423 leans towards a high-yield market, especially for landlords willing to participate in the Section 8 voucher program. The difference of $340 per month between the FMR and the market rent represents a significant premium, making it attractive for those who can navigate the requirements of the program.
Moving to the stability axis, the presence of a substantial number of renters at 40.6% implies a decent demand for rental properties. However, the absence of days on market (DOM) data means we cannot assess how quickly properties are rented out. The median household income of $53,472 provides some context but does not directly correlate to the stability of rental payments. It's worth noting that the median home value of $274,725 is relatively high compared to the income level, which could indicate that the area is slightly more affluent, potentially leading to fewer defaults on rental agreements.
Considering both yield and stability, ZIP 83423 appears to be a market that offers a balance between the two. It is not purely a high-yield/low-stability flip-style market, nor is it solely a steady-cashflow zone. The high FMR relative to market rent makes it appealing for higher returns, especially under Section 8, while the moderate renter population and decent income levels suggest a reasonable degree of stability. Landlords should be aware of the specific dynamics of the ZIP code, including the potential challenges of leasing properties through Section 8, and the benefits of higher rental income compared to the market rate.
To conclude, ZIP 83423 stands out as a market that offers opportunities for both yield and stability, albeit with a slight bias towards yield due to the significant difference between FMR and market rent. For small-portfolio investors looking to diversify their investments, this ZIP code presents an interesting option, particularly if they are willing to engage with the Section 8 program to capitalize on the higher rents.
Data Sources: FMR data from HUD (2027). 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.