Location: Garfield County, WA | Metro: Lewiston, ID-WA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 99347 reveals interesting dynamics between Section 8 housing vouchers and market rents, particularly when considering the median home value of $244,121. For a two-bedroom property, the Fair Market Rent (FMR) as of FY 2024 is set at $1180 per month under the Section 8 program. This translates into an annualized income of $14,160. When compared to the median home value, this implies a gross yield of approximately 5.8%, calculated as $14,160 divided by $244,121.
On the other hand, the Census ACS reports the market rent for a two-bedroom apartment in ZIP 99347 at $791 per month. This equates to an annualized market rent of $9,492. Given the same median home value, the market rent scenario suggests a gross yield of around 3.9%. The disparity between these two yields highlights the potential financial advantage of participating in the Section 8 program over renting at market rates.
The implied gross-yield of 5.8% from Section 8 participation is notably higher than the 3.9% from market rent. However, it's important to consider the context of ZIP 99347. With a renter density of 23.7%, the demand for rental properties is relatively low, which might affect the likelihood of securing a tenant at the FMR rate. Additionally, the lack of data on Days on Market (DOM) makes it challenging to assess how quickly a property can be rented out under either scenario. Despite these uncertainties, the higher gross-yield from Section 8 could be more attractive to landlords and small-portfolio investors looking for stable returns, especially if they are willing to accept the terms and conditions associated with the program.
In conclusion, while the market rent provides a lower gross-yield, the higher yield from Section 8 may offer a more predictable and stable income stream. Landlords should weigh the benefits of guaranteed income against the administrative complexities of the Section 8 program.
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.