Location: Sweet Grass County, MT | Metro: Sweet Grass County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,090 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 59033 reveals a significant opportunity due to the gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,460. However, the current market rent is not available, which suggests that there might be an under-supply of rental units or a lack of recent data. This scenario typically favors voucher tenants as they can fill the void left by the scarcity of market-rate renters.
In ZIP 59033, only 0.0% of the population are renters, indicating a predominantly owner-occupied community. With a median income of $71,635 and no reported median home value, it's evident that homeownership is preferred over renting. The absence of a median home value could imply that the data is incomplete or that the majority of homes are owner-occupied, thus not listed for sale or rent.
The reliance on Section 8 vouchers becomes crucial for landlords and small-portfolio investors looking to enter or remain in the rental market. Voucher tenants provide a steady and reliable source of income, as their rent is subsidized by the government. This makes the ZIP code a yield play, where landlords can benefit from a guaranteed tenant base despite the low percentage of renters. The voucher system ensures that the landlord receives the full FMR amount, which in this case is $1,460, without the risk of vacancy or delinquency typical in areas with higher market volatility.
While the FMR exceeds any available market rent, this does not necessarily mean that landlords will see lower profits. Instead, the focus should be on the operational costs and the potential for long-term tenancy stability. Voucher tenants often have longer tenures compared to non-subsidized renters, which can mitigate the risks associated with high turnover rates.
To summarize, the gap between the FMR and the unreported market rent in ZIP 59033 presents a unique investment opportunity for landlords and small-portfolio investors. Leveraging the Section 8 program can provide a consistent income stream, making it a viable strategy in this predominantly owner-occupied 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.