Location: Great Falls, MT | Metro: Great Falls, MT MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 59465 might have several concerns regarding the viability of participating in the Section 8 housing program. Here are the most pressing objections, addressed with the available data.
Objection 1: Will Fair Market Rent (FMR) of $980 cover the mortgage on a home valued at $256,562?
The FMR of $980 for ZIP 59465 in fiscal year 2024 must be compared against the mortgage costs to determine if it's sufficient. Assuming a typical mortgage rate of around 4%, the annual mortgage payment on a $256,562 home would be approximately $15,394, which translates to a monthly payment of $1,283. This amount is higher than the FMR of $980. Therefore, relying solely on the FMR would not cover the mortgage costs. Landlords should consider additional income sources or the possibility of raising rent above the FMR threshold when permissible.
Objection 2: Is there enough renter demand at 0.0%?
The data indicates that the renter demand in ZIP 59465 is at 0.0%. This figure suggests that there is currently no demand for rental properties in this area through the Section 8 program. However, the lack of data could also imply that the demand is not being tracked or reported accurately. To make an informed decision, potential investors should conduct further research into local rental markets and the availability of Section 8 participants. It's possible that demand exists but isn't reflected in the provided data.
Objection 3: Will vouchers keep pace with the market rents?
The data provided does not specify the current market rents for ZIP 59465, only indicating that the information is N/A. Without this context, it's difficult to assess whether vouchers will adequately compensate landlords for the actual cost of renting out their properties. Typically, voucher amounts are adjusted annually to reflect changes in the housing market. If the FMR of $980 is significantly lower than the market rent, landlords may face a shortfall unless they can negotiate higher rents outside of the voucher program.
In summary, while the FMR of $980 is insufficient to cover the mortgage on a $256,562 home, the lack of demand data and current market rents complicates a full assessment of investment feasibility in ZIP 59465. Further investigation is recommended before making any decisions.
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.