Section 8 Fair Market Rent (FMR) for ZIP 83854 - 2027

Investment Score for ZIP 83854

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,250
1 Bedroom	$1,270
2 Bedrooms	$1,480
3 Bedrooms	$2,050
4 Bedrooms	$2,470
5 Bedrooms	$2,865
6 Bedrooms	$3,209
7 Bedrooms	$3,466
8 Bedrooms	$3,639

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,270	$396,660	0.32%	F
2BR	$1,480	$407,928	0.36%	F
3BR	$2,050	$499,508	0.41%	F
4BR	$2,470	$589,236	0.42%	F
5BR	$2,865	$705,824	0.41%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 83854 (Post Falls, ID) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 83854 is set by HUD for 2026 as follows: - 0BR: $1090 - 1BR: $1290 - 2BR: $1530 - 3BR: $2130 - 4BR: $2570 These figures represent the maximum rent that a Section 8 voucher holder can pay based on the size of the unit. However, it is important to note that the actual rents in the market often exceed these values. For instance, the Zillow median price for a 2BR unit in Post Falls is $402,554, which translates into a monthly mortgage payment that could be significantly higher than the FMR. The Price-to-FMR ratio of 21.9x indicates that the median home value is nearly 22 times the FMR for a 2BR unit. This suggests that the actual rental costs in the area are likely much higher than the FMR, creating significant constraints for voucher holders who may struggle to find units within their budget. #### Affordability & Renter Profile In ZIP code 83854, 32.1% of households are renters, indicating a substantial demand for rental properties. With a median household income of $82,742, the affordability of housing is a critical issue. The FMR for a 2BR unit is $1530, which represents 22.2% of the median income. This means that a 2BR unit at FMR is affordable for those earning the median income, but the actual market rents are likely higher, making it challenging for lower-income households to secure housing. Given the occupancy rate of 94.8%, the rental market appears to be relatively tight, suggesting that there is little excess supply. This tightness could lead to higher rents and increased competition among tenants, particularly those relying on Section 8 vouchers. The high occupancy rate also implies that landlords have less incentive to lower rents, potentially exacerbating the affordability issues faced by low-income renters. #### Investor Angle From an investor perspective, the ZIP code 83854 presents a mixed picture. The FMRs set by HUD provide a baseline for what voucher holders can afford, but they do not necessarily reflect the actual rental market rates. Given the high Price-to-FMR ratio of 21.9x, it is likely that most rental properties in the area command rents well above the FMR. Therefore, an investor focusing solely on Section 8 vouchers would need to ensure that their property management costs and other expenses are covered by the FMR rates. To determine if this ZIP code is cash-flow positive at FMR, we must consider the typical operating expenses, such as maintenance, utilities, insurance, and property taxes. If these expenses are high relative to the FMR, then an investor might struggle to achieve positive cash flow. However, if an investor can manage costs effectively, they may still find profitability in this market, albeit at a lower margin compared to areas where rents are closer to the FMR. The investment grade for this ZIP code would depend on the ability to secure tenants at or near the FMR while maintaining a positive cash flow. Given the tight market and high occupancy rate, there is potential for steady demand, but the challenge lies in balancing the rent against the actual market rates and the FMR. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should focus on acquiring or developing smaller units (0BR, 1BR) that are more likely to align with the FMR. For example, a 1BR unit at $1290 is only 15.6% of the median income, making it more accessible to lower-income households. This strategy can help ensure a steady stream of Section 8 tenants. 2. **Consider Cost Management**: To achieve positive cash flow, investors should carefully manage operational costs. This includes negotiating lower utility bills, securing competitive insurance rates, and optimizing maintenance schedules. By keeping costs below the FMR, investors can maintain profitability even in a high-cost market like Post Falls. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 83854 is to **Hold**. While the market is tight and rents are significantly higher than the FMR, there is a substantial demand for rental properties, particularly from lower-income households. Investing in smaller units and managing costs effectively can help maintain a positive cash flow. However, given the high Price-to-FMR ratio, investors should be cautious about overpaying for properties and should ensure that their acquisition costs and ongoing expenses are aligned with the FMR to avoid financial strain.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.