Location: Lemhi County, ID | Metro: Lemhi County, ID
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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $900 | $233,718 | 0.39% | F |
| 2BR | $1,040 | $288,759 | 0.36% | F |
| 3BR | $1,440 | $386,667 | 0.37% | F |
| 4BR | $1,740 | $470,325 | 0.37% | F |
| 5BR | $2,018 | $651,030 | 0.31% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $990 for ZIP 83467 (Salmon, ID) in fiscal year 2026 will sufficiently cover the mortgage on a home valued at $340,167. To assess this, consider that the median home price in Salmon, ID, implies an average monthly mortgage payment of approximately $1,380, assuming a 20-year fixed-rate mortgage at today's interest rates. The FMR of $990 falls short of covering this mortgage, indicating a gap between what tenants can pay and the cost of homeownership.
The second objection could be the relatively low percentage of renters in the area, which stands at 21.1%. This figure suggests that while rental demand exists, it may not be as robust as in more densely populated areas. However, the lower population density also means fewer competing properties, potentially leading to higher occupancy rates among the available rental units. Additionally, the local economy and job market play a significant role in sustaining demand; thus, further analysis of employment trends is necessary to provide a comprehensive understanding of the rental market's stability.
A third concern might revolve around the adequacy of Housing Choice Vouchers to meet the market rent of $753. According to the data, the voucher amount does not fully match the market rent, leaving a shortfall that landlords must either absorb or make up through other means. This discrepancy poses a risk, especially if the voucher program does not adjust its payments in line with rising market rents. Landlords should monitor any updates to the voucher amounts and consider the financial implications of relying on these subsidies.
In summary, while the FMR of $990 does not fully cover the mortgage on a typical home in ZIP 83467, the relatively low competition among rental properties and the potential for higher occupancy rates may mitigate some risks. The current renter demand at 21.1% is modest but manageable given the economic context. Lastly, the disparity between the voucher amount and the market rent of $753 requires close attention, as future adjustments to the voucher program could impact profitability. These insights provide a balanced view of the investment landscape in Salmon, ID, highlighting both challenges and opportunities.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.