Location: Coeur d'Alene, ID | Metro: Coeur d'Alene, ID MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,270 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
The analysis of the Section 8 cap-rate picture for ZIP code 83877 in Idaho reveals several key points that are crucial for landlords and small-portfolio investors.
The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 83877 for fiscal year 2024 is set at an annualized rate of $1260. This figure represents the maximum amount that a Section 8 tenant can pay towards their housing costs in this area. However, without specific data on the market rent for the same property type, it's challenging to provide a direct comparison. The median home value for the area is also not available, making it difficult to assess the overall real estate value relative to rental income.
In the context of Section 8 properties, the implied gross yield is derived from the difference between the actual market rent and the FMR, divided by the purchase price of the property. Given the FMR of $1260 annually, if we assume that the market rent is higher, the gross yield would be positive, indicating potential profitability. Conversely, if the market rent is lower or equal to the FMR, the gross yield would be zero or negative, suggesting a less favorable investment scenario.
Without precise market rent figures, it's impossible to state the exact gross yield. However, the lack of data on median home values and market rents suggests that there might be limited information available regarding the real estate market in ZIP 83877. This could indicate either a nascent market with few transactions, or an area where real estate data collection is less robust.
The absence of specific renter density and days on market (DOM) figures further complicates the assessment. Renter density and DOM are critical indicators of the local rental market health and demand. High renter density typically implies a robust demand for rentals, whereas a high DOM might suggest a slower market with fewer renters actively seeking housing.
To make a concrete comparison, investors should gather local market data to determine the actual market rent for similar properties. Once this information is available, the gross yield can be calculated by comparing the market rent to the FMR. If the market rent significantly exceeds the FMR, the gross yield will be more favorable, indicating a potentially profitable investment. Otherwise, the investment may not be as attractive from a purely financial standpoint.
In conclusion, while the FMR provides a baseline for understanding the rental subsidy landscape in ZIP 83877, the lack of detailed market data makes it challenging to draw definitive conclusions about the cap-rate and gross yield. Investors should proceed with caution and seek out additional local market insights before making any decisions.
Data Sources: FMR data from HUD (2027).
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.