Location: Valley County, MT | Metro: Valley County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
The ZIP code 59250 presents a unique investment opportunity that can be classified as a moderate-yield/moderate-stability market for landlords and small-portfolio investors. The analysis is based on the Federal Market Rent (FMR) of $1,050 for the fiscal year 2026, which is significantly higher than the market rent of $485. This indicates a potential upside for rental properties, particularly those that can be rented at or near the FMR rate.
However, the stability of this market is tempered by several factors. First, only 9.1% of the residents are renters, suggesting a relatively low demand for rental properties compared to owner-occupied homes. Additionally, the median household income of $51,375 provides some insight into the economic health of the area but does not offer a complete picture of the rental market's stability due to the lack of data on days on market (DOM).
The median home value of $242,742 is also noteworthy. This figure suggests that while there might be opportunities for high yields through rental income, the capital required to enter this market is substantial. For investors looking to maximize returns quickly, this could be seen as a barrier given the relatively low percentage of renters in the area.
To summarize, ZIP 59250 offers a balance between yield and stability. The high FMR compared to the market rent suggests strong potential for rental income, especially if the property can be positioned to attract tenants willing to pay closer to the FMR. However, the low percentage of renters and the absence of DOM data indicate a less stable market, where finding and retaining tenants might require more effort and possibly a competitive pricing strategy. The median home value of $242,742 implies that investments here will likely be larger and more capital-intensive.
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.