Location: Valley County, MT | Metro: Daniels County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
U.S. Census Bureau data (2024)
The ZIP code 59260 presents several challenges for potential Section 8 landlords. Tenant turnover could be higher than expected due to the discrepancy between the market rent and the Fair Market Rent (FMR) of $1,170, which is set for fiscal year 2026 and applies to the metropolitan area. This difference suggests that tenants might find it difficult to cover the full rent without assistance, leading to increased churn rates.
Vacancy exposure is another significant risk. The average days on market (DOM) is not available, but this metric is crucial for understanding how long properties might remain vacant. A prolonged vacancy can lead to financial strain, as rental income does not come in during these periods, while expenses such as property taxes and maintenance continue.
Deferred-maintenance exposure is also a concern. The median income in ZIP 59260 is $85,313, which is relatively high compared to the national average. However, without knowing the typical home value, it's challenging to assess the extent to which homeowners might delay necessary repairs or upgrades. If home values are lower than expected, owners might struggle to keep up with maintenance costs, which could impact the quality of rental units.
On the positive side, the high renter share of 14.0% indicates a strong demand for rental housing. In areas with a high percentage of renters, there tends to be a greater reliance on housing vouchers, which can stabilize cash flow for landlords. Voucher holders typically have a more reliable payment history, reducing the risk of non-payment and eviction.
In conclusion, the risks associated with tenant turnover, vacancy exposure, and deferred maintenance must be carefully weighed against the high renter demand in ZIP 59260. Given these factors, the overall risk for a first-time Section 8 landlord in this area is moderate.
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.