Location: Lewis and Clark County, MT | Metro: Lewis and Clark County, MT HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,150 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
The analysis of the Section 8 program in ZIP code 59624 reveals a significant gap between the Federal Market Rent (FMR) and the actual market rents. The FMR for the metro area in fiscal year 2026 is set at $1,650. However, the specific market rent for ZIP 59624 is currently unavailable. This makes it challenging to quantify the exact gap in dollars and percentage.
In the context of Unknown, MT, where detailed local metrics such as the percentage of renters, median home values, and median incomes are also not provided, the implications of this gap become particularly relevant. If the FMR is higher than the market rent, landlords and small-portfolio investors can leverage this situation to generate a higher yield. Voucher tenants, who pay a portion of their income towards rent, provide a guaranteed income stream that is often above what the market would offer. This scenario is beneficial for investors looking to maximize returns in a stable rental environment.
Conversely, if the FMR is lower than the market rent, landlords might face a reduction in rental income due to the capped rates paid by voucher holders. The cost of housing voucher tenants below open-market rates means that landlords must adjust their expectations and potentially their property management strategies to remain profitable. In this case, the difference between the FMR and the market rent could result in landlords receiving less than they could from non-voucher tenants, impacting their overall investment yield.
Without specific data on the percentage of renters, median home values, and median incomes in ZIP 59624, it's crucial for investors to consider broader regional trends and consult local real estate experts to understand the dynamics at play. This will help them make informed decisions regarding the potential benefits and challenges of participating in the Section 8 program.
Data Sources: FMR data from HUD (2027).
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.