Location: Boise City, ID | Metro: Boise City, ID HUD Metro FMR Area
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 | $1,380 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,550 |
| 4 Bedrooms | $3,080 |
| 5 Bedrooms | $3,573 |
| 6 Bedrooms | $4,002 |
| 7 Bedrooms | $4,322 |
| 8 Bedrooms | $4,538 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,840 | $548,307 | 0.34% | F |
| 3BR | $2,550 | $542,881 | 0.47% | F |
| 4BR | $3,080 | $603,573 | 0.51% | F |
| 5BR | $3,573 | $730,954 | 0.49% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 83669 (Star, ID) reveals significant differences between the federal market rent (FMR) and the actual market rent, impacting potential investment yields.
The annualized Fair Market Rent (FMR) for a two-bedroom property in Star, ID for FY 2024 is $1390. This translates into an annual rental income of $16,680. Given the median home value of $575,283, the implied gross yield for a Section 8 property under this scenario is approximately 2.9%. This calculation is based on the formula: Gross Yield = (Annual Rental Income / Property Value) * 100.
In contrast, the market rent for a two-bedroom property in Star, ID, as indicated by ZORI (Zillow Observed Rent Index), stands at $2,253 per month, resulting in an annual rental income of $27,036. With the same median home value of $575,283, the implied gross yield for a market-rent property is approximately 4.7%.
The gross yield difference between the FMR and market rent scenarios is substantial, with the market rent offering nearly twice the yield. However, the reality of the situation is more nuanced. The renter density in Star, ID is only 18.3%, indicating that a majority of residents prefer homeownership over renting. Additionally, the Days on Market (DOM) average of 48 days suggests a relatively quick turnover for rentals, but it also implies a competitive market where landlords might struggle to find tenants willing to pay the higher market rent consistently.
Given these factors, the FMR-based gross yield of 2.9% is likely a more realistic expectation for landlords participating in the Section 8 program. While the market rent scenario offers a more attractive gross yield of 4.7%, the lower renter density and the competitive nature of the local rental market suggest that securing long-term tenancy at market rates could be challenging. Investors should consider the stability and reliability of rental income when comparing these yields, rather than focusing solely on the percentage.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.