Location: Coeur d'Alene, ID | Metro: Coeur d'Alene, ID MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 83842 centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 83842 in fiscal year 2024 is set at $1110. However, the market rent is currently not available, indicating that there might be limited data or volatility in the local rental market.
In the absence of specific market rent figures, it's crucial to consider the implications of the FMR being potentially above the market rent. This scenario suggests that voucher tenants could offer a consistent income stream, making properties in this area a favorable yield play for landlords and small-portfolio investors. The stability provided by government-backed vouchers can ensure steady cash flow, which is particularly beneficial when market rents are unpredictable or lower than the FMR.
Given the ZIP code's demographic context, where only 10.4% of residents are renters and the median household income stands at $91,429, it's evident that the rental market in 83842 is relatively small compared to homeownership. This low percentage of renters indicates that the demand for rental properties might be less robust, and landlords should carefully evaluate their investment strategies.
The cost of housing voucher tenants below open-market rates must also be considered. While the FMR provides a baseline for rental income, if the actual market rent is indeed lower, landlords may face challenges in covering operational costs such as maintenance, property taxes, and insurance. This could result in a lower net yield on investment properties, making it imperative for landlords to manage expenses effectively.
To summarize, the gap between the FMR and the unknown market rent in ZIP 83842 presents both opportunities and risks for landlords. Voucher tenants can provide a stable income, but the potential for market rent being below FMR levels necessitates careful financial planning and management to maintain profitability.
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.