Location: Elmore County, ID | Metro: Elmore County, ID
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
U.S. Census Bureau data (2024)
A landlord considering purchasing property in ZIP code 83633 for Section 8 investment must evaluate several key factors:
1) Does the Fair Market Rent (FMR) of $1,010 cover the debt service on a $438,358 property?
Yes. The FMR of $1,010 is sufficient to cover the debt service on a property valued at $438,358. To understand this better, calculate the monthly mortgage payment based on typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at 4%, the monthly payment would be approximately $2,100. This figure is derived from the standard mortgage formula and common interest rate environment. Given that the FMR exceeds this amount, the answer is a clear yes.
No. If the monthly mortgage payment exceeds $1,010, then the FMR does not sufficiently cover the debt service. However, based on the provided data, this scenario does not apply to ZIP 83633.
2) Is the market rent of $869 (from Census ACS) above, at, or below the FMR?
Above. If the market rent were above $1,010, this would indicate a strong rental market where landlords could potentially earn higher rents than the FMR, providing additional income beyond what is required for Section 8 properties. In this case, it would depend on how much higher the market rent is and whether the difference justifies the investment.
At. If the market rent equaled the FMR, it would mean that the rental income aligns perfectly with the government's fair market assessment. This scenario suggests stability but no premium over the FMR.
Below. With a market rent of $869, which is below the FMR of $1,010, landlords can expect the government to subsidize the difference between the actual rent and the FMR. This makes the investment viable as long as the subsidized rent covers the debt service. For ZIP 83633, the answer is below, indicating that the subsidy will play a crucial role in the financial feasibility of the investment.
3) Are 15.5% renters and the days on market (DOM) sufficient to meet demand?
Yes. A 15.5% renter population suggests a moderate level of demand for rental properties. While the percentage is not exceptionally high, it is reasonable given that the DOM is listed as N/A, which typically means listings sell quickly or are not common. Quick sales or low inventory indicate strong demand, supporting the viability of a Section 8 investment.
No. If the DOM were significantly high, indicating slow sales or an oversupply of rental units, the demand might not be strong enough to support a new Section 8 investment. However, the N/A status implies the opposite, making this branch less applicable.
It Depends. The strength of the demand also hinges on other factors such as local economic conditions, employment rates, and the availability of alternative housing options. If these factors suggest robust growth and limited housing, even a moderate renter population could sustain demand. For ZIP 83633, the data points towards a positive outlook, but further analysis of these additional factors is recommended.
In conclusion, for ZIP 83633, the FMR adequately covers the debt service, the market rent is below the FMR, and there is a moderate renter population with quick sales, indicating that a Section 8 investment is feasible. Landlords should still consider broader economic trends and housing supply to make a fully informed decision.
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.