Location: Big Horn County, MT | Metro: Big Horn County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,180 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,140 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
U.S. Census Bureau data (2024)
In ZIP code 59016, the economics of Section 8 housing are defined by the SAFMR (Small Area Fair Market Rent) set by the U.S. Department of Housing and Urban Development (HUD). For a two-bedroom apartment in this ZIP code, the SAFMR for fiscal year 2026 is $1,550. This figure represents the maximum amount that HUD will reimburse landlords for rent under the Section 8 program. However, it's important to understand how this payment is structured.
The local market rent for a two-bedroom unit in ZIP 59016 is significantly lower at $425 according to the latest Census ACS data. This discrepancy highlights the importance of understanding the reimbursement structure when participating in the Section 8 program.
A Section 8 voucher works by covering the difference between the tenant's contribution and the SAFMR. Tenants are generally expected to pay 30% of their adjusted income toward rent. In ZIP 59016, if we assume an average adjusted income that aligns with the local market rent, the tenant would contribute approximately $127.50 per month (30% of $425).
Additionally, the voucher includes an allowance for utilities, which can vary but is typically around $300 for a two-bedroom apartment. Therefore, the total reimbursement from HUD to the landlord would be the sum of the tenant's contribution ($127.50) and the utility allowance ($300), plus the base rent reimbursement, which is capped at the SAFMR of $1,550.
To calculate the actual reimbursement, subtract the tenant's contribution from the SAFMR and add the utility allowance. Thus, the reimbursement would be $1,550 - $127.50 + $300 = $1,722.50. However, this exceeds the SAFMR cap, so the final reimbursement is limited to $1,550.
The typical gap or surplus in reimbursement for a two-bedroom unit in ZIP 59016 is the difference between the SAFMR and the local market rent. Given the local market rent is $425, the surplus for landlords participating in the Section 8 program is $1,550 - $425 = $1,125 per month. This surplus indicates that landlords can expect to receive a higher monthly rental payment compared to the local market rent, making participation in the Section 8 program financially advantageous in this area.
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.