Section 8 Fair Market Rent (FMR) for ZIP 83687 - 2027

Investment Score for ZIP 83687

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	$1,140
1 Bedroom	$1,280
2 Bedrooms	$1,520
3 Bedrooms	$2,100
4 Bedrooms	$2,540
5 Bedrooms	$2,946
6 Bedrooms	$3,300
7 Bedrooms	$3,564
8 Bedrooms	$3,742

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,280	$265,652	0.48%	F
2BR	$1,520	$312,548	0.49%	F
3BR	$2,100	$403,780	0.52%	F
4BR	$2,540	$485,119	0.52%	F
5BR	$2,946	$556,165	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 83687 (Nampa, ID) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 83687, as set by HUD for 2026, is $1660 for a two-bedroom unit. This amount represents 26.0% of the median household income in Nampa, which stands at $76,682. The FMR is designed to ensure that rental units are affordable for low-income households, but it is crucial to understand how these figures compare to actual rents in the area. According to Zillow, the median price for a two-bedroom home in Nampa is $301,448. However, the price-to-FMR ratio is quite high at 15.1x, indicating that the actual rent prices could be significantly higher than the FMR. For instance, if we assume a typical rental yield of around 1% per month, the monthly rent for a property priced at $301,448 would be approximately $2512. This is well above the FMR of $1660, suggesting that many landlords might find it challenging to accept Section 8 vouchers due to the lower rent ceilings imposed by the program. #### Affordability & Renter Profile In ZIP code 83687, 27.7% of the population are renters, which translates to about 11,980 individuals or households. With a median household income of $76,682, the average renter would likely struggle to afford market-rate rents, especially for larger units. The occupancy rate of 96.4% indicates that the housing market is relatively tight, with few vacant units available. This tightness can make it difficult for low-income households to find affordable housing, particularly when they rely on Section 8 vouchers. Given that the FMR for a three-bedroom unit is $2320, and assuming a similar price-to-FMR ratio, the actual market rent for such a unit could be upwards of $35,000 annually. This is a significant financial burden for families earning the median income, let alone those who are eligible for Section 8 assistance. Therefore, the demand for affordable housing is likely strong, but the supply is constrained by the high cost of living and limited availability of units within the FMR range. #### Investor Angle From an investor perspective, the ZIP code 83687 presents both opportunities and challenges. The high price-to-FMR ratio suggests that properties rented at FMR levels may not generate substantial cash flow compared to market-rate rentals. However, there is a clear need for affordable housing, which could make Section 8 properties attractive to certain investors looking to serve a specific demographic. To determine if this ZIP code is cash-flow positive at FMR, we must consider the typical expenses associated with owning and renting out a property. Assuming a mortgage payment of $1500 per month (based on a 30-year fixed-rate mortgage at 4.5% interest on a $301,448 property), property taxes of $200 per month, insurance of $100 per month, and maintenance costs of $100 per month, the total monthly expenses would be $1900. At the FMR of $1660, the property would not cover these expenses, resulting in a negative cash flow of $240 per month. This negative cash flow scenario implies that the investment grade for Section 8 properties in this ZIP code is relatively low. Investors should carefully weigh the potential benefits of serving a stable tenant base against the financial risks of operating below market rates. #### Specific Actionable Insights 1. **Target Smaller Units**: Given the high price-to-FMR ratio, investors might focus on smaller units like one-bedroom apartments, where the FMR is $1390. While still not covering the full mortgage payment, these units could potentially attract tenants willing to pay slightly above the FMR, thereby improving cash flow. 2. **Consider Location-Specific Strategies**: Certain areas within Nampa may have lower property values and thus lower FMR ratios. Investors should conduct detailed location-specific analyses to identify neighborhoods where the FMR is closer to the actual rent prices, making Section 8 properties more financially viable. 3. **Utilize Non-Section 8 Tenants**: To maximize profitability, investors might consider renting to non-Section 8 tenants for a portion of their portfolio. This could help offset the financial losses incurred by renting at FMR levels and provide a more balanced approach to managing rental properties. #### Bottom Line For investors focusing specifically on Section 8 properties, the recommendation for ZIP code 83687 is to **skip** this market. The high price-to-FMR ratio and the resultant negative cash flow make it difficult to achieve a positive return on investment. Instead, investors might want to explore other ZIP codes with more favorable FMR ratios or consider a mixed strategy of targeting both Section 8 and non-Section 8 tenants to balance their portfolios. However, if an investor is willing to take on the financial risks and has a long-term vision for serving the community, they could still find value in investing in smaller units or in specific neighborhoods with lower property values.

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.