Location: Idaho Falls, ID | Metro: Idaho Falls, ID HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,180 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $2,050 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 83444 reveals a stark contrast between government-subsidized rental income and market rents. The Fair Market Rent (FMR) for a 2-bedroom unit in ZIP 83444, as determined by the government for FY 2024, is set at an annualized rate of $1360. This figure represents the amount that would be paid under the Section 8 program, implying a gross yield of approximately 0.33% when compared to the median home value of $410,852.
In contrast, the market rent for a similar property, based on Census ACS data, stands at $910 annually. This translates into a gross yield of about 0.22%. Both these yields are exceptionally low, suggesting that properties in ZIP 83444 are significantly overvalued relative to the rental income they generate, whether through Section 8 subsidies or market rents.
The 37.1% renter density in the area indicates a moderate level of demand for rental housing, which could support market rents but also suggests a substantial portion of homeownership. However, the lack of Days on Market (DOM) data makes it difficult to assess the liquidity and turnover rates of rental properties, which are critical factors for landlords and small-portfolio investors.
Given the data, the Section 8 scenario offers a slightly higher gross yield at 0.33%, compared to the market rent scenario at 0.22%. This difference, however, is negligible and does not compensate for the operational challenges often associated with the Section 8 program, such as stricter maintenance requirements and slower payment cycles. Therefore, while the Section 8 program might offer a marginally better financial return, the market rent scenario is more reflective of the actual rental environment, considering the renter density and typical market conditions.
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.