Location: Big Horn County, MT | Metro: Big Horn County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
U.S. Census Bureau data (2024)
The median income in ZIP code 59089 stands at $62,870, which places significant constraints on the ability of households to afford the market rate rent of $606. Despite being below the median income, the market rate rent is still a considerable expense. When compared to the federal payment standard of Fair Market Rent (FMR) at $1,140, it becomes evident that the actual market rate is substantially lower.
Given that 25.5% of the 801 residents are renters, the competition among landlords is likely to be fierce. The disparity between the FMR and the actual market rate suggests that many tenants might struggle to pay even the lower market rates without assistance. This creates an affordability gap where the federally supported rental amount far exceeds what local renters can afford on their own.
For landlords considering whether to accept Section 8 vouchers or opt for cash-paying tenants, the analysis points to a few key takeaways. Accepting vouchers could provide a steady stream of income, albeit at a higher rate than the current market average. However, the demand for affordable housing is high, indicating that landlords who offer competitive rents might attract a larger pool of potential tenants willing to pay cash. This strategy could reduce dependency on government programs but would also require maintaining properties at a level that meets market expectations.
Ultimately, landlords in ZIP 59089 must weigh the benefits of accepting vouchers against the possibility of attracting more cash-paying tenants. The decision should consider the local economic conditions, tenant preferences, and the overall competitiveness of the rental market.
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.