Location: Blaine County, MT | Metro: Blaine County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 59529 reveals a complex picture regarding the potential returns for landlords and small-portfolio investors interested in Section 8 properties. The Fair Market Rent (FMR) for a 2-bedroom apartment, set at $1,180 per month for fiscal year 2026, annualizes to $14,160. This figure is derived from the metropolitan area guidelines and provides a benchmark for rental income expectations.
Unfortunately, the median home value and market rent for ZIP 59529 are currently unavailable, which complicates the direct calculation of a cap rate or gross yield based on these metrics. However, we can still infer some implications from the available data. Given that the 2BR FMR is $14,160 annually, if we were to assume a property value, say for argument's sake, $200,000, the implied gross yield would be 7.08%. This is calculated by taking the annualized FMR and dividing it by the assumed property value ($14,160 / $200,000).
The renter density in ZIP 59529 stands at 37.8%, indicating a significant portion of the population rents rather than owns their homes. This could suggest a stable demand for rental housing, including Section 8 units. However, the Days on Market (DOM) is also not available, making it difficult to assess how quickly properties are typically leased in this area.
In the absence of market rent data, we cannot provide an exact comparison to the gross yield derived from the FMR. Nonetheless, it's crucial to consider that the FMR represents a government-set limit and might not reflect the actual market conditions fully. For instance, if the market rent significantly exceeds the FMR, the gross yield for non-Section 8 properties could be much higher, potentially reducing the attractiveness of Section 8 investments unless they offer other benefits such as guaranteed tenancy.
Given the high renter density, there is likely a robust demand for affordable housing, supporting the viability of Section 8 properties. However, the lack of specific market rent and median home value data means that any gross yield comparison must remain speculative. Investors should seek out local real estate agents or market analysts to fill these gaps and refine their investment strategy accordingly.
To summarize, while the FMR provides a clear annual income benchmark, the absence of market rent and median home value data prevents a precise cap-rate or gross-yield comparison. The 7.08% gross yield based on FMR is a starting point, but the reality of returns will depend on the actual property values and market rents in ZIP 59529.
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.