Location: Sweet Grass County, MT | Metro: Park County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,020 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $2,010 |
| 4 Bedrooms | $2,430 |
| 5 Bedrooms | $2,819 |
| 6 Bedrooms | $3,157 |
| 7 Bedrooms | $3,410 |
| 8 Bedrooms | $3,581 |
U.S. Census Bureau data (2024)
In ZIP code 59082, the economics of Section 8 housing can be clearly understood by examining the SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment, which is set at $1,410 for the fiscal year 2026. This figure represents the maximum amount that the federal government will reimburse landlords for renting out a unit under the Section 8 Housing Choice Voucher program.
The SAFMR is specifically tailored for this ZIP code, ensuring that it reflects the local rental market conditions. However, the current local market rent for a two-bedroom apartment in ZIP 59082 is not available, which makes it challenging to compare the SAFMR directly to market rates. Despite this lack of information, understanding how the voucher system operates can still provide valuable insights for landlords and small-portfolio investors.
A Section 8 voucher does not cover the entire rent amount. Tenants are required to contribute a portion of their income towards the rent, typically 30% of their adjusted monthly income. For example, if a tenant's adjusted monthly income is $1,000, they would pay $300 towards the rent. The remaining balance, up to the SAFMR, is then covered by the government. In the case of ZIP 59082, if the rent is set at $1,410, the government would pay the difference between the tenant’s contribution and the SAFMR.
Additionally, the voucher includes allowances for utilities, which vary based on the type of unit and the number of occupants. These allowances are designed to help cover the cost of electricity, gas, water, and other essential services. Landlords should be aware that the utility allowance is a fixed amount and does not fluctuate based on actual usage or market prices.
To illustrate, if a landlord charges $1,410 for a two-bedroom apartment, and the tenant contributes $300, the government will cover the remaining $1,110. If there is a utility allowance of $200 included in the voucher, the total reimbursement to the landlord would be $1,310 ($1,110 for rent + $200 for utilities).
This leaves a reimbursement gap of $100, meaning the landlord receives $10 less than the SAFMR for each unit rented under the Section 8 program. It's important to note that this gap could be larger or smaller depending on the actual market rent and the tenant’s contribution. For landlords, it is crucial to balance the benefits of stable, government-backed payments against the potential shortfall when setting rents for Section 8 properties.
In summary, landlords in ZIP 59082 who participate in the Section 8 program for a two-bedroom apartment can expect a reimbursement of $1,310, assuming the utility allowance is $200 and the tenant contributes 30% of their adjusted monthly income. This results in a $100 gap compared to the SAFMR of $1,410.
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.