Location: Toole County, MT | Metro: Toole County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 59435 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area for fiscal year 2026 is set at $1,200. However, the market rent in this area is listed as N/A, indicating incomplete data. For the purposes of this analysis, we will assume that the market rent is higher than the FMR, which is a common scenario.
If the market rent were higher than $1,200, it would mean that landlords accepting Section 8 vouchers would be renting units below the prevailing market rate. This could lead to a financial loss if the difference between the FMR and market rent is significant. For example, if the market rent was $1,500, the gap would be $300 per month, or a 25% discount from the market rate. Landlords would need to consider whether the steady income from voucher tenants justifies the lower rental rate compared to what might be obtained in the open market.
The context of ZIP 59435 provides little insight into the typical renter population, as it is stated that 0.0% of residents are renters. Additionally, the median home value and median income figures are not available, making it difficult to assess the economic landscape of the area. Despite these limitations, the decision to accept Section 8 vouchers should be based on a thorough understanding of the local rental market and the financial implications of renting at FMR versus market rates.
To make an informed decision, landlords and small-portfolio investors should conduct a detailed analysis of the local rental market trends and consult with local housing authorities to understand the terms and benefits of participating in the Section 8 program. They must weigh the potential for a more stable tenant base against the possible reduction in rental income.
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.