Section 8 Fair Market Rent (FMR) for ZIP 83605 - 2027

Investment Score for ZIP 83605

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,060
1 Bedroom	$1,260
2 Bedrooms	$1,500
3 Bedrooms	$2,090
4 Bedrooms	$2,510
5 Bedrooms	$2,912
6 Bedrooms	$3,261
7 Bedrooms	$3,522
8 Bedrooms	$3,698

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,260	$248,571	0.51%	F
2BR	$1,500	$285,605	0.53%	F
3BR	$2,090	$362,120	0.58%	F
4BR	$2,510	$414,097	0.61%	D
5BR	$2,912	$472,896	0.62%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 83605 (Caldwell, ID) #### Section 8 Voucher Dynamics In ZIP code 83605, the Fair Market Rent (FMR) for a two-bedroom unit is set at $1660 per month for 2026. However, the Zillow median price for a two-bedroom rental property is $276,660, which translates to a monthly rent of approximately $13.9 times the FMR. This means that the actual rent charged by landlords is significantly higher than the FMR, making it challenging for Section 8 voucher holders to find suitable housing. The FMR represents only 29.1% of the median household income, indicating that voucher holders have limited options when searching for affordable housing. Landlords who accept Section 8 vouchers must adhere to these rent limits, which can be a constraint in a market where rents are much higher. #### Affordability & Renter Profile The population of Caldwell, ID, is 41,325, with 30.8% of residents being renters. Given the occupancy rate of 95.3%, it suggests that the rental market is relatively tight, with few vacancies available. The median household income is $68,427, which provides some context on the economic profile of the area. While 30.8% of the population are renters, the high price-to-FMR ratio indicates that the rental market is not particularly affordable for low-income households. The median income is not sufficient to cover the actual rent prices without assistance, especially for families needing larger units like three or four bedrooms. #### Investor Angle From an investor perspective, the ZIP code 83605 presents a mixed picture. The FMR for a two-bedroom unit is $1660, but the actual median price for such units is $276,660, leading to a monthly rent of around $2230 based on typical mortgage payments and expenses. This means that landlords accepting Section 8 vouchers would need to operate at a lower rent level compared to the market average, potentially reducing their cash flow. However, the tight rental market and high occupancy rates suggest that there is demand for rental properties, even if they are priced at the FMR. The investment grade would depend on factors such as the cost of acquisition, ongoing maintenance costs, and the ability to secure long-term tenants through the Section 8 program. Given the high median prices, the initial capital outlay would be significant, but the potential for steady income from a stable tenant base could make it a worthwhile investment. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units, such as one-bedroom or studio apartments, where the gap between FMR and market rent is less pronounced. For example, the FMR for a one-bedroom unit is $1390, while the market rent might be closer to $1800-$2000, providing a more manageable difference. 2. **Consider Renovation Projects**: Investors might consider purchasing older properties at a lower price point and renovating them to meet the needs of Section 8 tenants. This approach can help reduce the overall cost of acquisition and allow for better alignment with FMR guidelines. Additionally, renovated properties often attract more stable and reliable tenants. 3. **Utilize Local Real Estate Agents**: Engage with local real estate agents who specialize in Section 8 properties. They can provide valuable insights into the market dynamics and help navigate the complexities of finding properties that fit within the FMR constraints. #### Bottom Line For investors focusing specifically on Section 8 properties, the ZIP code 83605 offers a challenging yet potentially rewarding opportunity. The high price-to-FMR ratio means that cash flow will likely be lower compared to market-rate rentals, but the strong demand and high occupancy rates indicate that there is a solid tenant base. Therefore, the recommendation is to **Hold** on to existing Section 8 properties in this area, but **Skip** new acquisitions unless they can be secured at a price point that allows for reasonable cash flow within the FMR guidelines. Investors should carefully evaluate the financials of any potential purchase, considering the FMR limits and the actual market rents. Smaller units and renovation projects may offer better opportunities for aligning with the FMR requirements while still maintaining a positive cash flow.

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.