Location: Bonner County, ID | Metro: Bonner County, ID
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 83841 for Section 8 purposes must evaluate several factors to make an informed decision. The first question to address is whether the Fair Market Rent (FMR) of $1,130 for the metro area in fiscal year 2026 can cover the debt service on a property valued at $636,375. To determine this, one must calculate the monthly mortgage payment, including principal, interest, taxes, and insurance. Assuming a standard 30-year fixed-rate mortgage at an average rate and typical tax and insurance costs, the monthly debt service would likely exceed the FMR. Therefore, the answer to the first question is No.
The second question pertains to how the market rent compares to the FMR. In ZIP 83841, the market rent is currently N/A, indicating that there is insufficient data to draw a conclusion. However, if market rent were above the FMR, it would suggest that landlords could potentially earn more from market tenants than from Section 8 tenants. If market rent were at or below the FMR, then Section 8 tenants would be a viable option. Given the lack of data, the answer to this question is It Depends.
The third question concerns the demand for rental properties. With 8.3% of residents being renters and the days on market (DOM) for rental listings being N/A, it's challenging to gauge the overall demand. A lower percentage of renters might indicate less demand for rental properties, but without knowing the DOM, we cannot assess how quickly properties are rented out. Thus, the answer to this question is also It Depends.
In summary, for ZIP code 83841, the FMR does not sufficiently cover the debt service on a property valued at $636,375, which makes it a poor investment solely based on Section 8 tenants. The lack of data on market rent and the DOM for rental listings further complicates the decision-making process. Landlords should seek additional information to better understand the local rental market dynamics before investing in this area.
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.