Location: Malheur County, OR | Metro: Humboldt County, NV
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $2,050 |
| 5 Bedrooms | $2,378 |
| 6 Bedrooms | $2,663 |
| 7 Bedrooms | $2,876 |
| 8 Bedrooms | $3,020 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 89421 reveals a challenging landscape for Section 8 landlords and small-portfolio investors. The annualized Fair Market Rent (FMR) for a 2-bedroom apartment is set at $1,290 per month for fiscal year 2026, based on metropolitan area standards. However, without specific data on median home values, it's difficult to calculate an exact cap rate.
To provide a clearer picture, let's consider the scenario where we have the market rent and median home value. If the median home value were available, we could derive a cap rate by comparing the annual rental income to the property's value. For instance, if a median home value were hypothetically $300,000, the annual rental income from a 2-bedroom unit would be $15,480 ($1,290 x 12 months). This would imply a gross yield of 5.16% ($15,480 / $300,000).
In reality, the lack of specific market rent figures means that any cap rate calculation is speculative. Nevertheless, it's important to note that the implied gross yield from the Section 8 FMR is lower than typical market yields, which can range from 6% to 10%, depending on the location and property type. Given the 23.3% renter density in ZIP 89421, the demand for rental properties is moderate, suggesting that landlords might face some competition from non-Section 8 rentals.
The Days on Market (DOM) figure is also missing, which would help determine how quickly properties can be rented out. A low DOM indicates strong demand, whereas a high DOM suggests slower turnover rates, impacting cash flow and overall profitability.
In conclusion, while the Section 8 program provides a stable source of income, the gross yield is likely to be lower compared to market rents. The moderate renter density and absence of specific market data suggest that landlords should carefully evaluate their investment strategy in ZIP 89421.
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.