Location: Boise City, ID | Metro: Boise City, ID HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,200 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
The analysis of the Section 8 cap-rate scenario for ZIP code 83725 reveals some critical insights into potential investment opportunities. The Federal Market Rent (FMR) for a two-bedroom apartment in this area, based on fiscal year 2026 data, is set at $1,710 per month. This figure is derived from the metropolitan area average, which provides a benchmark for rental assistance payments.
To determine the implied gross yield, we need to consider the annualized FMR. Multiplying the monthly FMR of $1,710 by 12 gives us an annual rent of $20,520. Without a specific median home value for ZIP 83725, it's challenging to provide a precise cap-rate calculation. However, assuming a median home value that is typical for similar areas, we can infer that the gross yield would be relatively low due to the disparity between the annualized FMR and the potential purchase price of a property.
In contrast, if we were to use market rent figures, the gross yield could be significantly higher, depending on the actual market rates. Unfortunately, the market rent data for ZIP 83725 is currently unavailable, which limits our ability to compare it directly with the FMR-based gross yield. Given the lack of specific median home value and market rent data, it's difficult to state definitively which scenario is more realistic.
However, the absence of detailed market rent data suggests that landlords might face challenges in accurately pricing their properties. This uncertainty could lead to a preference for the guaranteed payment through Section 8, especially considering the N/A% renter density and the N/A-day days on market (DOM), which indicate the competition and demand for rental properties in the area.
The FMR-based gross yield of approximately $20,520 annually must be weighed against the stability and predictability of Section 8 payments versus the potentially higher but riskier returns from market rents. Landlords and small-portfolio investors should carefully evaluate these factors before making investment decisions in ZIP 83725.
Data Sources: FMR data from HUD (2027).
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.