Section 8 Fair Market Rent (FMR) for ZIP 83704 - 2027

Investment Score for ZIP 83704

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	$1,160
1 Bedroom	$1,300
2 Bedrooms	$1,550
3 Bedrooms	$2,150
4 Bedrooms	$2,590
5 Bedrooms	$3,004
6 Bedrooms	$3,364
7 Bedrooms	$3,633
8 Bedrooms	$3,815

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	$1,300	$246,539	0.53%	F
2BR	$1,550	$340,960	0.45%	F
3BR	$2,150	$420,401	0.51%	F
4BR	$2,590	$507,182	0.51%	F
5BR	$3,004	$588,261	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 83704 (Boise, ID) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 83704 in Boise, ID, for 2026 is set at $1660 for a two-bedroom unit. This figure represents 27.1% of the median household income in the area, which stands at $73,390. However, the actual rental market in 83704 is significantly higher, with Zillow reporting a median price for a two-bedroom home at $337,046. The price-to-FMR ratio for a two-bedroom unit is 16.9 times the FMR, indicating that the actual market rent far exceeds the FMR. For voucher holders, this means that finding affordable housing can be challenging. They are constrained by the FMR limits, which do not reflect the true cost of renting in the area. Consequently, voucher holders may struggle to secure housing within their budget, particularly in a competitive market like 83704. #### Affordability & Renter Profile In ZIP code 83704, 37.0% of the population are renters, suggesting a significant demand for rental properties. With a high occupancy rate of 96.0%, it is clear that the market is tight, and there is little excess capacity. Given the median household income of $73,390 and the FMR for a two-bedroom unit being $1660, the affordability of housing is a concern. The median rent for a two-bedroom unit is approximately $1660, but the actual market price is much higher, making it difficult for low-income households to find suitable accommodation without assistance. This tight market condition implies that landlords have considerable leverage over rental prices, which can further exacerbate the affordability issue for renters. #### Investor Angle From an investor’s perspective, the cash flow potential at the FMR level is limited due to the disparity between FMR and actual market rents. If we consider the FMR for a two-bedroom unit at $1660, this is substantially lower than the actual market rent. To determine if this ZIP code is cash-flow positive, we need to look at the typical rental rates versus the FMR. Since the actual market rent is likely closer to the Zillow median price of $337,046, which translates into a monthly rent of around $2808 based on typical mortgage calculations, the difference between actual market rent and FMR is significant. This suggests that landlords who rely solely on Section 8 vouchers will face challenges in achieving positive cash flow, especially when considering property management costs, maintenance expenses, and other operational costs. The investment grade for this ZIP code would be moderate to low for Section 8-focused investors. While the demand for rental properties is strong, the constraints imposed by the FMR can limit profitability. Additionally, the high occupancy rate indicates that there is little room for error in terms of vacancy rates, which can be a risk factor for investors. #### Specific Actionable Insights 1. **Renters’ Assistance**: Given the high price-to-FMR ratio, landlords should consider offering additional incentives or assistance to Section 8 voucher holders to help them cover the gap between FMR and actual market rent. This could include offering to pay for utilities or providing a move-in discount. 2. **Diversify Tenant Base**: Investors should diversify their tenant base beyond just Section 8 voucher holders. By attracting tenants who can afford market rates, they can mitigate the financial risks associated with relying solely on FMR-based rents. This might involve marketing to a broader audience or adjusting property amenities to appeal to a wider range of renters. 3. **Focus on Lower-Rent Units**: Since the FMR for smaller units (like one-bedroom) is lower ($1390), investors might consider focusing on developing or acquiring smaller units where the gap between FMR and market rent is less pronounced. This could provide a more stable and predictable cash flow scenario. #### Bottom Line Given the tight rental market and the significant disparity between FMR and actual market rents, the recommendation for Section 8-focused investors in ZIP code 83704 is to **Skip** this market unless they can find ways to supplement the income from FMR-based rents. The high price-to-FMR ratio and the limited number of units that fall within the FMR range make it challenging to achieve positive cash flow. Instead, investors might want to explore other ZIP codes with a better alignment between FMR and actual market rents, or consider strategies to attract a mix of tenants including those who can afford market rates. --- This analysis provides a detailed overview of the rental market dynamics in ZIP code 83704, focusing specifically on the implications for Section 8 voucher holders and investors. It highlights the challenges and opportunities present in this market and offers concrete recommendations based on the provided data.

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.