Location: Toole County, MT | Metro: Toole County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,080 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
U.S. Census Bureau data (2024)
To understand how Section 8 economics work in ZIP code 59484, it's important to start with the basics. The Section 8 program uses Fair Market Rents (FMRs) to determine the amount of rental assistance provided to tenants. In this case, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in ZIP 59484 for fiscal year 2026 is set at $1,460. This figure is specific to this ZIP code, reflecting the local housing costs.
The SAFMR does not necessarily align with the local market rent, which is currently unavailable. However, the SAFMR serves as the benchmark for determining the maximum amount a landlord can charge for rent under the Section 8 program. If the local market rent were higher than $1,460, landlords would still be limited to this amount when renting to a Section 8 participant in this ZIP code.
A landlord's actual reimbursement under a Section 8 voucher depends on several factors, including the tenant's portion of the rent and utility allowances. Tenants typically contribute 30% of their adjusted income toward rent. For example, if a tenant's monthly adjusted income is $1,000, they would pay $300 towards rent. The remainder of the rent up to the SAFMR limit of $1,460 would be covered by the Section 8 voucher, meaning the landlord would receive $1,160 from the government in this scenario.
In addition to the rent, the Section 8 program also provides an allowance for utilities, which can vary based on the type of unit and the location. These allowances are designed to cover the average cost of utilities in the area, ensuring that tenants do not face excessive out-of-pocket expenses. While the exact utility allowance for ZIP 59484 is not specified here, it is important for landlords to factor this into their overall financial planning.
The typical reimbursement gap or surplus occurs when comparing the total amount paid by the tenant and the government to the local market rent. Since the local market rent is not available, we cannot calculate the precise gap or surplus. However, if the market rent is higher than the SAFMR, there will be a reimbursement gap, meaning landlords might have to accept a lower rent than the market rate. Conversely, if the market rent is lower than the SAFMR, landlords could potentially receive a surplus, covering their costs and providing additional revenue.
For landlords and small-portfolio investors, understanding these dynamics is crucial for making informed decisions about accepting Section 8 tenants. The reimbursement structure ensures that landlords are paid a predictable amount, but it may not always match the local market conditions.
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.