Location: Teton County, MT | Metro: Pondera County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 59432 reveals a unique set of challenges due to limited data availability. For the purposes of this assessment, we will focus on the Federal Market Rent (FMR) for a two-bedroom apartment, which is set at $1,200 per month for fiscal year 2026, based on metro area standards.
Given that the median home value is not available, it's impossible to provide an exact cap rate for the area. However, we can still derive a rough picture of the gross yield using the Section 8 FMR and making assumptions about market rents. The annualized Section 8 FMR for a two-bedroom unit amounts to $14,400 ($1,200 x 12 months).
In the absence of specific market rent data, we must rely on the known FMR to estimate the gross yield. Assuming a typical home value range for similar areas, let's consider a hypothetical median home value of $200,000 for the sake of illustration. This would imply a gross yield of 7.2% for Section 8 properties ($14,400 / $200,000).
The renter density in ZIP 59432 is 11.1%, indicating a relatively low percentage of residents who rent their homes. This suggests that the demand for rental properties, including those under the Section 8 program, may be constrained. Additionally, the lack of data on the days on market (DOM) makes it difficult to assess how quickly properties might be leased, further complicating the investment decision.
While the hypothetical gross yield of 7.2% based on a $200,000 median home value provides a starting point, it's important to note that this scenario is speculative without the actual median home value. Landlords and small-portfolio investors should seek additional local market data to refine these estimates. Given the low renter density, the reality may be closer to this lower yield, rather than a higher market rent-based yield, unless there is significant competition for affordable housing units in the area.
To make a more informed decision, investors should consider conducting a detailed market analysis that includes property values, local rental rates, and the specifics of the Section 8 program in ZIP 59432. This will help them understand the true potential of their investments and avoid overestimating 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.