Location: Jefferson County, MT | Metro: Jefferson County, MT HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 59631 reveals some interesting insights for landlords and small-portfolio investors. Based on the Fair Market Rent (FMR) for a 2-bedroom apartment set at $1,380 annually (for FY 2026, metro), we can derive the implied gross yield when compared to the median home value of $297,238.
To calculate the gross yield, we divide the annual rental income by the property's value. In this case, using the FMR figure, the gross yield would be:
$1,380 / $297,238 = 0.00464 or approximately 0.46%
This calculation assumes that the entire property is rented out at the FMR rate for a 2-bedroom unit. However, it is important to note that this scenario is highly unlikely due to the low gross yield percentage. Typically, landlords aim for higher yields to ensure profitability.
Given the lack of data on market rents, we cannot provide an accurate comparison to the FMR-based gross yield. However, considering the 24.4% renter density in the area, it is evident that a significant portion of the population might rely on government assistance programs such as Section 8. This factor could influence the overall rental market dynamics.
The Days on Market (DOM) figure being listed as N/A indicates a need for further investigation into the local real estate market trends. A high DOM can suggest difficulty in renting out properties, while a low DOM might indicate a competitive rental market where properties are quickly occupied.
In conclusion, while the FMR-based gross yield stands at about 0.46%, this figure does not reflect typical market conditions and is therefore less realistic. Investors should seek more comprehensive market data to make informed decisions regarding rental pricing and investment potential in ZIP 59631.
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.