Location: Valley County, MT | Metro: Phillips County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The market in ZIP code 59241 presents a dynamic scenario that is worth exploring for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, set at $1,050 for fiscal year 2026, indicates the government's benchmark for rental affordability. This figure is notably higher than the actual market rent, which stands at $582 according to the Census ACS data. This discrepancy suggests that there is a significant gap between what the market can bear and the government's assessment, potentially pointing towards a situation where supply exceeds demand.
The median home value of $214,954 reflects the overall economic landscape of the area, providing a backdrop against which rental properties are valued. For investors, understanding the balance between home values and rental prices is crucial in gauging the potential profitability of rental investments versus home purchases.
A key indicator of the market's direction is the 33.7% renter share. This percentage tells us that a substantial portion of the population in 59241 opts for renting over homeownership, suggesting a persistent long-term housing pressure. In markets with high renter shares, there is often an ongoing need for rental units, which can be beneficial for landlords who manage their properties efficiently. However, it also implies that competition among rental properties might be fierce, as many residents are looking for affordable housing options.
The lack of specific data on price-cut share and days on market (DOM) limits a detailed analysis of short-term fluctuations. Nevertheless, the high FMR compared to the actual market rent points towards a market where landlords might find it challenging to command premium rents. This could be due to a variety of factors, including an abundance of rental units, lower income levels among residents, or a preference for homeownership among those who can afford it.
In conclusion, ZIP 59241 offers a mixed picture for real estate investors. While the high renter share suggests a steady demand for rental properties, the current market rent being significantly below the FMR hints at a competitive environment. Investors should focus on property management efficiency and consider the broader economic context of the area when making investment decisions.
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.