Location: Pend Oreille County, WA | Metro: Bonner County, ID
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $870 | $430,920 | 0.2% | F |
| 2BR | $1,140 | $507,057 | 0.22% | F |
| 3BR | $1,580 | $577,734 | 0.27% | F |
| 4BR | $1,720 | $750,573 | 0.23% | F |
| 5BR | $1,995 | $903,597 | 0.22% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 83856, Priest River, ID, might have several valid concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these objections head-on using the available data.
Will FMR $980 (metro FY 2026) cover the mortgage on a $554,387 home?
The Fair Market Rent (FMR) for ZIP 83856 is set at $980 per month for fiscal year 2026. To determine if this amount can cover the mortgage on a property valued at $554,387, we need to consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4%, the monthly payment on a $554,387 home would be approximately $2,700. Clearly, the FMR of $980 falls short of covering the mortgage, which indicates that relying solely on Section 8 rental income would not be sufficient to meet the financial obligations of owning such a property. Additional sources of income or lower mortgage amounts would be necessary to ensure profitability.
Is there enough renter demand at 14.0%?
The percentage of renters in ZIP 83856 is 14.0%. This figure represents a relatively low demand for rental properties compared to other areas, which could pose challenges for landlords seeking to fill vacancies. However, it's important to note that while the overall demand is modest, the Section 8 program specifically targets low-income individuals who may have limited housing options. Therefore, despite the general low rental rate, the demand for subsidized housing could still be strong, especially if the area has social services or employment opportunities that attract those eligible for Section 8 assistance.
Will vouchers keep pace with $897 market rents?
The market rent in ZIP 83856 is reported at $897 per month. The question of whether vouchers will keep pace with this figure hinges on the historical trends of voucher adjustments and the current economic conditions. Data does not provide specific projections for future voucher amounts, but historically, the U.S. Department of Housing and Urban Development (HUD) adjusts voucher amounts annually based on the local market conditions. Given that the FMR is slightly higher at $980, it suggests that HUD aims to ensure vouchers cover a substantial portion of the market rent. However, it's crucial to monitor local adjustments closely as they can vary widely and impact the ability to maintain rental income levels that cover operating costs and desired profit margins.
In summary, while ZIP 83856 presents some challenges for Section 8 investors, particularly in terms of covering mortgage payments and general rental demand, the potential for a stable tenant base through the voucher system remains a significant factor. Investors must carefully weigh these considerations and possibly seek out properties with lower purchase prices to align with the rental income generated by the Section 8 program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.