Location: Richland County, MT | Metro: Dawson County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,260 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 59259 for Section 8 purposes must follow a structured decision-making process based on the financial metrics and market conditions specific to the area. The first step is to evaluate whether the Fair Market Rent (FMR) of $1,560 for the metro area in fiscal year 2026 can cover the debt service on a property valued at $170,414. This involves calculating the monthly mortgage payment plus any other associated costs such as insurance and property taxes. If these expenses are lower than the FMR, then the answer to the first question is a clear yes. Otherwise, it's a no.
The second criterion is to compare the market rent of $608 (as reported by the Census ACS) against the FMR. If the market rent is above the FMR, it suggests that there is strong demand for rental properties, which would make the investment attractive even outside of Section 8. If the market rent is equal to the FMR, the investment is balanced, and the landlord would rely heavily on Section 8 vouchers. If the market rent is below the FMR, the investment is riskier because it indicates weaker demand, and landlords might struggle to find tenants willing to pay the higher FMR rate.
The third factor to consider is the percentage of renters and the days-on-market (DOM) figures. In ZIP 59259, 19.0% of residents are renters, and the DOM is listed as N/A, which could mean insufficient data or that listings sell quickly. Given the limited data on DOM, the focus shifts to the percentage of renters. With only 19.0% of the population renting, the demand for rental properties is moderate. This suggests that landlords need to ensure they can attract and retain Section 8 tenants effectively.
Decision Tree:
The final decision should be based on the intersection of these factors. A positive outcome on the first two points, combined with moderate renter demand, supports a strategic investment in ZIP 59259 for Section 8 properties. However, if any of the criteria fail to meet expectations, the investment becomes less viable.
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.