Location: Boise City, ID | Metro: Boise City, ID HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,370 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,830 |
| 3 Bedrooms | $2,530 |
| 4 Bedrooms | $3,060 |
| 5 Bedrooms | $3,550 |
| 6 Bedrooms | $3,976 |
| 7 Bedrooms | $4,294 |
| 8 Bedrooms | $4,509 |
U.S. Census Bureau data (2024)
Skeptical investors often have valid concerns when considering investments in ZIP 83713, Boise, ID. Here are some common objections and the data to address them:
The Fair Market Rent (FMR) for ZIP 83713 is set at $1630 for fiscal year 2024. To determine if this will cover the mortgage on a $470,113 home, we need to consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly mortgage payment for a $470,113 home would be approximately $2,345. This means that the FMR of $1,630 falls short by about $715 per month. However, it's important to note that FMRs are designed to cover only a portion of the rent for low-income households, and investors can seek higher rents from non-subsidized tenants.
The rental demand in ZIP 83713 stands at 22.3%. This percentage reflects the proportion of the population renting versus owning homes. While this figure might seem low, it still represents a significant number of potential tenants. The key metric here is whether the number of renters exceeds the number of available rental units. If there is a shortage of rental properties, the demand will likely remain strong despite the lower percentage. Additionally, the trend of increasing urbanization and changing demographics towards younger populations who prefer renting over buying could bolster demand further.
The voucher program aims to ensure affordable housing but does not guarantee that the amount will always match the market rents. In ZIP 83713, the market rent is $1,776, which is notably higher than the FMR. Vouchers are adjusted annually based on HUD guidelines and local market conditions, but they might not fully cover the market rent. Landlords should be aware that voucher payments typically do not increase as rapidly as market rents. However, the stability and security of voucher tenants can outweigh the risk of fluctuating rents in volatile markets.
Investors must weigh these factors carefully. While the FMR may not fully cover mortgage costs, diversifying tenant types can mitigate financial risks. Rental demand, though not exceptionally high, remains steady, and voucher programs provide a reliable income stream even if not matching market rents exactly.
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.