Location: Shoshone County, ID | Metro: Shoshone County, ID
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
U.S. Census Bureau data (2024)
A skeptical investor analyzing ZIP code 83808 might raise several concerns regarding the feasibility of investing in properties that participate in the Section 8 program. Here are some of the key objections and how the available data addresses them.
The first objection is whether the Fair Market Rent (FMR) of $1,070 for the metro area in fiscal year 2026 will be sufficient to cover the mortgage on a property in ZIP 83808. Unfortunately, the data does not provide a specific median home value for this ZIP code, making it challenging to calculate the exact mortgage coverage. However, landlords should consider the average FMR trend over recent years to estimate future costs. If historical trends indicate a steady increase, it's reasonable to expect that the FMR will continue to rise, potentially covering higher mortgage payments in the future.
The second concern is the level of renter demand, which stands at 3.6%. This figure suggests that there is a relatively low percentage of renters compared to homeowners in the area. While this may seem concerning, it also implies that the competition among rental properties could be lower, allowing landlords to maintain higher occupancy rates. Additionally, the demand for affordable housing often remains stable regardless of the overall percentage of renters, as many residents rely on Section 8 vouchers to find suitable accommodation.
The third issue is the ability of vouchers to keep pace with market rents. The data provided does not specify the current voucher amount or the rate at which voucher values have increased historically. Without this information, it's difficult to assess if vouchers will adequately compensate for any rise in market rents. However, the Housing Choice Voucher Program is designed to adjust voucher amounts periodically based on local market conditions. Landlords should monitor these adjustments and the local rental market to ensure they remain competitive while maintaining profitability.
In summary, while the data presents some gaps, particularly in terms of specific mortgage costs and historical voucher adjustments, the Fair Market Rent provides a solid basis for investment decisions. The relatively low renter demand percentage does not necessarily translate into poor investment opportunities, especially given the stability of the Section 8 program. Landlords and small-portfolio investors should conduct thorough research and stay informed about local market dynamics to make well-informed decisions about investing in ZIP 83808.
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.