Location: Hill County, MT | Metro: Chouteau County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
The Federal Market Rent (FMR) of $1,140 for ZIP 59540 significantly exceeds the local market rent of $650. This indicates that properties in this ZIP code can be rented out at rates higher than the typical market rate, making them attractive for Section 8 tenants who often have rental subsidies that cover a portion of the rent. The difference between the FMR and the market rent suggests a strong potential for positive cash flow.
Additionally, the median home value of $193,476 implies that the cost of acquiring properties in this area is relatively low, especially when compared to other metropolitan areas. This makes it feasible for landlords and small-portfolio investors to purchase multiple units without a significant capital investment, thereby increasing their overall cash flow.
While the median income of $74,250 and the 32.6% renter share suggest a moderate level of economic activity in the area, these factors do not outweigh the benefits of the cash flow generated by the high FMR relative to the market rent. Therefore, ZIP 59540 should be prioritized as a cash-flow anchor in any Section 8 portfolio strategy.
Investors should focus on maximizing the number of units they can acquire in ZIP 59540 to leverage the favorable rent-to-value ratio and secure steady cash flow. The strategy should include maintaining properties in good condition to ensure compliance with Section 8 requirements and to attract tenants who will pay the higher subsidized rents.
To summarize, ZIP 59540 is best suited as a cash-flow anchor due to the substantial spread between the FMR and the market rent, combined with a reasonable median home value that allows for efficient property acquisition and management.
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.