Location: Petroleum County, MT | Metro: Garfield County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 59058 is built around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $1,350. However, the current market rent data is unavailable, which complicates a direct comparison. Despite this, the implications of the FMR can still be analyzed within the broader context of the local rental market.
In ZIP 59058, there is an absence of typical rental market dynamics that would otherwise influence investment decisions. The data indicates that 0.0% of residents are renters, suggesting a predominantly owner-occupied community. This statistic alone does not provide a comprehensive picture of the rental market but points to a unique environment where rental properties might cater to niche segments, such as those seeking short-term housing solutions or specific types of accommodations not readily available through homeownership.
Given the lack of market rent data, we must consider the impact of the FMR on potential investments. In areas where the FMR exceeds the market rent, voucher tenants can become a significant source of stable, government-backed income. This makes the area a strong candidate for a yield play, as landlords can benefit from a guaranteed revenue stream without the risk of vacancy or non-payment that might occur in the open market. The stability provided by Section 8 vouchers allows investors to focus on property management and maintenance rather than tenant acquisition.
However, if the FMR is lower than the market rent, landlords accepting voucher tenants are effectively subsidizing housing costs. This scenario can lead to lower-than-market yields, potentially reducing profitability. The decision to accept voucher tenants under these conditions should be carefully weighed against the financial goals of the landlord or investor.
The median home value and median income data being unavailable further highlight the unique nature of ZIP 59058. Without these figures, it's challenging to gauge the economic health and potential demand for rental properties. Nevertheless, the presence of Section 8 vouchers provides a consistent income source, making the investment less dependent on fluctuating market rents and more on the reliability of government subsidies.
To summarize, the Section 8 thesis in ZIP 59058 centers on leveraging the FMR of $1,350 for a yield play, given the high proportion of owner-occupied homes and the absence of typical rental market pressures. While the exact gap in dollars and percentage cannot be quantified due to missing market rent data, the strategy remains viable for those willing to accept the terms of voucher programs.
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.