Location: Lewis and Clark County, MT | Metro: Lewis and Clark County, MT HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,420 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $2,040 |
| 3 Bedrooms | $2,820 |
| 4 Bedrooms | $2,950 |
| 5 Bedrooms | $3,422 |
| 6 Bedrooms | $3,833 |
| 7 Bedrooms | $4,140 |
| 8 Bedrooms | $4,347 |
U.S. Census Bureau data (2024)
The median income in ZIP code 59640 stands at $99,167. Given the absence of specific market rate data, it's imperative to analyze the situation based on the Fair Market Rent (FMR) standard set at $2,040 per month for the metro area in fiscal year 2026.
A household earning the median income would have an annual gross income of approximately $99,167. Typically, housing affordability guidelines suggest that no more than 30% of a household's income should be allocated towards rent. Applying this guideline, the maximum monthly rent a household could afford would be around $2,479. This figure exceeds the FMR of $2,040, indicating that households in this ZIP code could potentially afford market-rate rents higher than the FMR.
The ZIP code has a relatively low rental population of 160 individuals, representing 25.9% of the total population. This suggests a competitive environment for landlords, as there are fewer potential tenants relative to the overall population. The affordability gap, where market rates could exceed the FMR, means that landlords might face stiff competition when seeking to attract tenants who are willing and able to pay above the voucher payment standard.
For landlords considering their strategy between accepting vouchers versus relying on cash-paying tenants, the data points to a mixed scenario. While there is potential for higher rents due to the median income exceeding the FMR, the limited number of renters indicates a need for diversification. Accepting vouchers can ensure a steady stream of tenants, even if it caps the rent at the FMR level. On the other hand, focusing on cash-paying tenants allows for potentially higher revenue but requires navigating a more competitive landscape and ensuring properties meet the expectations of those who can afford higher rents.
The takeaway for landlords is to consider both the income levels and the rental population size when deciding on their tenant acquisition strategy. Balancing the security of voucher payments with the possibility of higher rents from cash-paying tenants will be key to success in ZIP code 59640.
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.