Location: Custer County, MT | Metro: Custer County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,160 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
U.S. Census Bureau data (2024)
ZIP code 59338, located in Custer County, Montana, represents an ideal diversifier within a Section 8 portfolio strategy. The renter share of 14.8% indicates a significant portion of the population relies on rental housing, aligning well with the tenant base supported by the Section 8 program. This makes the area suitable for landlords and small-portfolio investors looking to expand their holdings into regions where there is a demand for affordable rental units.
The median income of $69,375 suggests that while residents are not necessarily high earners, they can afford modest rents. This stability in the local economy supports the viability of Section 8 tenants who need subsidized housing. Despite the lack of specific data on market prices and median home values, the income levels indicate that the area can sustain a mix of rental properties, including those managed under Section 8 guidelines.
A key factor in choosing ZIP 59338 as a diversifier is the absence of high volatility in property prices or days on market (DOM), which would characterize it as an appreciation play. Instead, the steady renter share points to a consistent demand for rental properties, ensuring a reliable stream of income for investors. This consistency is crucial for maintaining positive cash flow, especially when considering the fixed rental assistance payments provided by the Section 8 program.
In fiscal year 2026, the Fair Market Rent (FMR) for the metro area is set at $1,610. Although the market rent and median home values are not specified, the presence of a stable Section 8 program ensures that landlords receive a predictable monthly income, which can be a cornerstone of a diversified investment strategy. By incorporating ZIP 59338 into their portfolios, investors can balance risk and reward, leveraging the predictability of government-backed rental assistance to secure a solid financial footing.
To summarize, ZIP 59338 serves best as a diversifier in a Section 8 portfolio due to its 14.8% renter share and median income of $69,375. These factors ensure a steady demand for rental properties and a reliable income source through the Section 8 program's fixed payment structure. Landlords and small-portfolio investors should consider this ZIP code as part of a broader strategy to include areas with stable rental markets and a significant need for affordable housing solutions.
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.