Location: Billings, MT | Metro: Billings, MT HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 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)
ZIP code 59026, located in the HUD Metro FMR Area of Billings, MT, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for FY 2024 is set at $1210, which represents the maximum amount that a landlord can charge for a Section 8 voucher tenant. Given the lack of market rental data and median home values, we rely on the FMR to gauge the financial viability of this area.
The role of a cash-flow anchor is to provide steady, predictable income through long-term tenants who are financially supported by the government. In ZIP 59026, the FMR ensures that landlords receive a consistent rental income, making it an ideal choice for those looking to stabilize their portfolio's cash flow. With a guaranteed rent of $1210 per month, landlords can count on a reliable source of income, assuming they meet all the requirements for participating in the Section 8 program.
This ZIP code does not offer significant potential as an appreciation play due to the absence of relevant data on price cuts and days on market (DOM). However, it can be a valuable diversifier within a larger investment strategy. The renter share in this area is 36.7%, indicating a moderate demand for rental properties. Additionally, the median household income is $90,278, which suggests that there is a stable economic base supporting the rental market.
Incorporating ZIP 59026 into a Section 8 portfolio allows investors to balance risk and reward by securing a portion of their holdings with properties that generate dependable income. This approach helps mitigate the volatility often associated with other types of investments and provides a solid foundation for long-term financial planning.
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.