Location: Divide County, ND | Metro: Sheridan County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,110 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
U.S. Census Bureau data (2024)
9.1% of the population in ZIP code 59275 are renters, indicating a smaller but stable demand for rental properties. With a median income of $49,141, residents have limited financial flexibility, making affordable housing options crucial. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,280, which is significantly higher than the market rent of $367 as reported by the Census ACS. This discrepancy suggests that Section 8 housing vouchers could play a pivotal role in bridging the affordability gap for low-income tenants.
The median home value in ZIP 59275 stands at $174,349, which is a reasonable investment point for small-portfolio investors looking to enter the market without committing to high-cost properties. Given the lower market rent, it's evident that there is a need for more affordable units, and Section 8 properties can fill this niche effectively.
While the data does not provide specific insights into the days on market (DOM) or the percentage of price-cut shares, the significant difference between the FMR and the actual market rent indicates a potential for steady occupancy rates for Section 8 properties. Landlords can expect a consistent stream of income, albeit at the subsidized rate, which is still above the current market rent.
The Section 8 program guarantees a certain level of payment, reducing the risk of vacancy and non-payment. For landlords in ZIP 59275, this means a reliable source of income without the volatility associated with market rents. Moreover, the guaranteed income can help cover maintenance costs and other expenses, making Section 8 participation a prudent choice for those seeking long-term stability.
Investors should note that the higher FMR compared to the market rent also implies that there is room for modest profit margins when considering the operational costs. The program's structure ensures that tenants pay a portion of their income towards rent, further stabilizing the cash flow for property owners.
In conclusion, for ZIP 59275, the data points clearly indicate that Section 8 properties are a viable investment option, offering stability and predictability in an otherwise volatile rental market. Verdict: Section 8 participation is recommended for both landlords and small-portfolio investors in ZIP 59275.
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.