Location: Teton County, MT | Metro: Chouteau County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,020 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
U.S. Census Bureau data (2024)
The ZIP code 59416 represents a small, tight-knit neighborhood with a total population of 425 residents. Given that 32.2% of these residents are renters, it suggests a community where a significant portion of the local populace depends on rental housing. The median household income in this area stands at $89,167, indicating a relatively affluent environment. This is further supported by the median home value of $339,493, which reflects the overall economic status and property values within the ZIP code.
Moving into the specifics of the rental market, the Fair Market Rent (FMR) for ZIP 59416, as determined by the Department of Housing and Urban Development (HUD) for fiscal year 2026, is set at $1,310. In contrast, the actual market rent, based on Census American Community Survey (ACS) data, is significantly lower at $940 per month. This discrepancy between the HUD-set FMR and the current market rent presents an opportunity for both hands-off voucher operators and hands-on value-add buyers.
For hands-off voucher operators, the higher FMR compared to the market rent means that tenants with Section 8 vouchers can afford to pay rents closer to the FMR, potentially leading to higher revenues without the need for extensive property management. However, the limited number of renters in this small community might restrict the pool of potential voucher holders, necessitating careful selection of properties that are likely to attract such tenants.
A hands-on value-add buyer could focus on improving properties to command rents closer to the FMR. Given the affluent nature of the neighborhood, there is a strong likelihood that upgraded properties would be well-received and could achieve higher rental rates, especially if marketed effectively to those who qualify for Section 8 assistance.
In summary, ZIP 59416 offers a unique blend of affordability and economic stability, making it suitable for both passive and active real estate investment strategies in the context of Section 8 housing. The key lies in understanding the local market dynamics and leveraging the gap between the FMR and current market rents to maximize returns.
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.