Location: Musselshell County, MT | Metro: Musselshell County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,030 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 59059 provides a glimpse into the potential returns for landlords and small-portfolio investors interested in Section 8 properties. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2026 is set at $1,340 per month, based on the metropolitan guidelines. However, the median home value and the current market rent are not available, which complicates the direct calculation of the gross yield.
To derive the gross yield from the Section 8 FMR, we must first annualize the monthly rent. At $1,340 per month, the annual rental income would be $16,080. Without the median home value, we cannot calculate the exact gross yield, but let's assume a median home value for illustration purposes. If the median home value were hypothetically $200,000, the implied gross yield from the Section 8 FMR would be 8.04%. This figure is derived by dividing the annual rental income ($16,080) by the property value ($200,000).
In the absence of market rent data, it's challenging to compare the gross yield directly. However, if we consider that the market rent typically exceeds the FMR, the gross yield from market rents would likely be higher than 8.04%, assuming the same median home value. For instance, if the market rent were $1,500 per month, the annual rental income would be $18,000, leading to an implied gross yield of 9%.
The renter density in ZIP 59059 stands at 9.0%, indicating a relatively low proportion of renters compared to homeowners. This statistic suggests that demand for rental properties, including those participating in the Section 8 program, might be lower. Additionally, the lack of Days on Market (DOM) data makes it difficult to assess how quickly properties are rented out, which is crucial for understanding cash flow and vacancy rates.
Given the limited data, the gross yield derived from the Section 8 FMR ($1,340 per month) is more realistic. Landlords should be prepared for potentially lower rental incomes compared to market rates, especially considering the low renter density. While the hypothetical market rent scenario offers a higher gross yield, the actual market conditions and demand for rental properties in ZIP 59059 need further investigation to substantiate this claim.
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.