Location: Lemhi County, ID | Metro: Lemhi County, ID
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 83465 provides insights into potential rental income scenarios for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in the metro area for fiscal year 2026 is set at $990 per month. To annualize this figure, we multiply by 12, yielding an annual rental income of $11,880. However, without specific data on the median home value in ZIP 83465, it's challenging to calculate the precise gross yield. Nonetheless, we can still provide a comparative analysis based on the available information.
In the scenario where a landlord relies solely on the Section 8 voucher program, the gross yield would be derived from the annualized FMR. For instance, if a property in ZIP 83465 were valued at $250,000, the implied gross yield would be approximately 4.75%. This calculation is straightforward: divide the annual rental income ($11,880) by the property value ($250,000).
The lack of market rent data complicates the second scenario, but assuming that market rents typically exceed Section 8 rates, the gross yield could potentially be higher. For example, if market rents were to be $1,200 per month, the annual rental income would increase to $14,400. Using the same $250,000 property value, the implied gross yield would then be 5.76%. This comparison shows that market rents offer a better gross yield than Section 8 rates.
Given the 21.3% renter density in ZIP 83465, it's important to note that there might be a limited pool of tenants who qualify for Section 8 vouchers. Additionally, the absence of data on days on market (DOM) suggests that the rental market dynamics are unclear. However, the higher gross yield from market rents makes this scenario more attractive, despite the challenges posed by a smaller pool of Section 8 eligible tenants.
To conclude, while the Section 8 cap rate offers a stable, albeit lower, gross yield of around 4.75%, market rents present a more lucrative opportunity with an estimated gross yield of 5.76%. The choice between these options should consider the local rental market conditions and the availability of qualified Section 8 tenants.
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.