Location: Billings, MT | Metro: Billings, MT HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
U.S. Census Bureau data (2024)
The ZIP code 59007 presents a unique scenario for real-estate investment, particularly for those interested in Section 8 properties. With a Fair Market Rent (FMR) of $1270 for fiscal year 2024, it significantly outpaces the market rent of $775. This disparity suggests a high-yield potential for landlords willing to participate in the Section 8 program.
The income level of the area, at $113,750, indicates a moderate economic base that supports a portion of the population capable of paying market rates, while also sustaining a substantial number of residents who rely on government assistance for housing. The rental rate composition, with 34.3% of the population being renters, shows a healthy demand for rental properties, which can be leveraged by landlords to ensure consistent cash flow.
However, the lack of data on days-on-market (DOM) introduces an element of uncertainty regarding property turnover and stability. Despite this gap in information, the significant difference between the FMR and the market rent suggests that there is a robust opportunity for landlords to secure higher rents through Section 8 participation compared to traditional market rents.
Given the high FMR relative to the market rent and the moderate income levels supporting both market-rate and subsidized rentals, 59007 leans towards being a high-yield market. However, without a precise measure of DOM, it's challenging to definitively classify it as low-stability. Nonetheless, the strong presence of renters and the availability of Section 8 subsidies suggest that while yields are likely high, stability could be somewhat compromised due to the dependency on government programs and potentially higher tenant turnover.
To summarize, ZIP 59007 appears to offer a high-yield environment, driven by the substantial gap between FMR and market rents. It's not a classic steady-cashflow zone but rather a market where landlords can expect good returns, albeit with some risk associated with the reliance on Section 8 subsidies and the unknowns regarding property turnover.
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.