Location: Mineral County, MT | Metro: Mineral County, MT HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 59830 might have several concerns regarding the financial viability of properties in this area, especially when it comes to Section 8 investments. Let's address these concerns head-on using the available data.
Will Fair Market Rent (FMR) of $1,190 cover the mortgage on a home in ZIP 59830? The short answer is that it depends on the property's value and financing terms. With an FMR of $1,190, an investor must ensure that the mortgage payments align with this figure. For instance, if a home costs around $200,000 and has a 30-year fixed-rate mortgage at a current average rate of 5%, the monthly payment would be approximately $1,073. This means that the FMR could indeed cover the mortgage, leaving a margin for maintenance and other expenses. However, the data does not provide the specific median home value for ZIP 59830, so investors should verify this against local real estate listings and market conditions.
Is there enough renter demand at 37.5%? The 37.5% figure likely represents the percentage of households that are renters in ZIP 59830. This indicates a moderate level of rental demand. While 37.5% may seem low compared to urban areas, it suggests that nearly four out of ten households are looking for rental properties. To put this into perspective, an investor should consider the total number of households in the area. If there are 1,000 households, then 375 are potential renters. This can be a significant pool, especially if the investor focuses on smaller, more affordable units that align well with the FMR. It's also important to note that the data does not specify the vacancy rate or the competition in the rental market, which would further inform the decision on whether this demand is sufficient.
Will vouchers keep pace with the market rents in ZIP 59830? The data provided includes the FMR but does not detail how voucher amounts compare to this figure. Typically, voucher amounts are set to reflect the local housing market, aiming to cover a substantial portion of the rent. In ZIP 59830, if the voucher amount is close to or exceeds $1,190, it would likely be sufficient to cover the rent on most properties. However, the data does not explicitly state the current average voucher amount or any projected increases. Investors should consult the local housing authority to understand the specifics of voucher programs and their alignment with market rents.
In conclusion, while ZIP 59830 presents some challenges for Section 8 investors, particularly in verifying property values and understanding the local rental dynamics, the data suggests that it is feasible to cover mortgage payments with the FMR. The renter demand, at 37.5%, is moderate and could support a small portfolio of rental properties. Lastly, the effectiveness of vouchers in covering market rents remains unclear without additional information on voucher amounts and adjustments over time.
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.