Location: Powell County, MT | Metro: Powell County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
U.S. Census Bureau data (2024)
In evaluating ZIP code 59733 for investment opportunities, particularly focusing on Section 8 properties, several key concerns arise that need addressing based on the available data.
Objection 1: Will Fair Market Rent (FMR) of $1,210 (metro FY 2026) cover the mortgage on a $473,002 home?
The FMR of $1,210 is the amount set by HUD to ensure that low-income families can afford decent housing. To determine if this will cover the mortgage, we must consider the typical mortgage rates and terms. Assuming a standard 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly payment on a $473,002 home would be approximately $2,375. This means that the FMR of $1,210 is insufficient to cover the mortgage payment. Landlords would need to supplement the FMR with additional income sources or have a lower mortgage amount, possibly through higher down payments or other financing arrangements.
Objection 2: Is there enough renter demand at 18.1%?
The 18.1% figure represents the percentage of households that are renters in ZIP 59733. While this is a relatively low percentage compared to many urban areas, it still indicates a significant number of potential tenants. For instance, if the total number of households in ZIP 59733 is 1,000, then 181 households are looking for rental properties. The question remains whether this demand is sufficient given the size of the property portfolio. With limited data, it's challenging to provide a definitive answer, but the presence of any rental demand suggests there is a market, albeit smaller than high-density areas.
Objection 3: Will vouchers keep pace with the local market rents?
The data provided does not include specific figures for local market rents in ZIP 59733, only noting that the information is currently unavailable. However, it's crucial to understand how voucher amounts adjust over time. Typically, voucher amounts are reviewed annually and adjusted to reflect changes in the local cost of living and housing prices. Without concrete local rent figures, it's difficult to assess if the current voucher amounts will match future rent increases. Investors should monitor local economic indicators and housing trends to predict potential discrepancies between voucher amounts and actual rents.
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.