Location: Boundary County, ID | 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 | $1,120 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,430 |
| 5 Bedrooms | $2,819 |
| 6 Bedrooms | $3,157 |
| 7 Bedrooms | $3,410 |
| 8 Bedrooms | $3,581 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,120 | $453,592 | 0.25% | F |
| 2BR | $1,470 | $563,173 | 0.26% | F |
| 3BR | $2,040 | $662,794 | 0.31% | F |
| 4BR | $2,430 | $885,660 | 0.27% | F |
| 5BR | $2,819 | $1,092,845 | 0.26% | F |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP 83864, encompassing Kootenai, ID, and parts of Bonner and Boundary Counties, presents a clear opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,430, while the actual market rent, as measured by Zillow's Owner Occupied Rental Index (ZORI), stands at $1,916. This indicates that voucher tenants will only cashflow with premium units in the area.
To derive the rent-to-price ratio, we can use the median home value of $646,302. At $1,916 per month, the annual rent would be $23,000, resulting in a rent-to-price ratio of approximately 3.55%. This ratio suggests that the housing market in ZIP 83864 is relatively expensive compared to rental yields, favoring homeownership over renting.
The median Days on Market (DOM) for homes in this area is 36 days, indicating a moderately active real estate market. However, the price-cut share of 0.1% suggests that sellers are rarely forced to reduce their asking prices, which points to a strong seller's market where homes sell close to or above their listed values.
Given these factors, the strongest angle for investors in ZIP 83864 is likely stability. While cashflow may be limited due to the discrepancy between FMR and market rent, the robust housing market and low price-cut share indicate that property values are unlikely to fluctuate significantly, providing a reliable investment option for those seeking long-term stability.
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.