Location: Big Horn County, MT | Metro: Big Horn County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
U.S. Census Bureau data (2024)
The ZIP code 59025 presents several challenges for landlords considering Section 8 investments. Firstly, tenant turnover is a significant concern, especially when comparing the market rent to the $1,160 Fair Market Rent (FMR) set for fiscal year 2026 in the metropolitan area. Landlords might face difficulties retaining tenants who are accustomed to the subsidized rates, leading to higher turnover costs.
Vacancy exposure is another critical risk factor. The average days on market (DOM) for properties in this area is not available, which makes it difficult to predict how long a property might remain vacant. Given the uncertainty around market conditions and tenant preferences, landlords should prepare for potential periods of vacancy that can impact cash flow negatively.
Deferred maintenance is a notable issue, particularly when considering the median income of $36,500. This figure suggests that many residents might struggle to afford substantial repairs or upgrades, even if they are necessary. Landlords will need to be prepared to handle these maintenance issues themselves, potentially increasing their operational expenses.
Despite these risks, the ZIP code has a high renter share of 55.6%, indicating a robust demand for rental housing. This high density of renters often translates into a greater interest in Section 8 vouchers, which can provide a stable stream of income through government subsidies. The presence of many voucher holders can mitigate some of the financial risks associated with vacancy and maintenance.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 59025 is moderate. While there are significant challenges related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter share offers a promising market for subsidized rentals.
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.