Location: Powell County, MT | Metro: Powell County, MT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,170 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,510 |
| 5 Bedrooms | $2,912 |
| 6 Bedrooms | $3,261 |
| 7 Bedrooms | $3,522 |
| 8 Bedrooms | $3,698 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 59843 is centered around the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,520, while the Census ACS reports the average market rent at $635. This represents a gap of $885, or 140%, indicating that the FMR is substantially higher than what tenants are currently paying.
This scenario makes ZIP 59843 a prime location for a yield play. Landlords and small-portfolio investors can capitalize on the difference between the actual rents and the FMR by participating in the Section 8 program. The higher reimbursement rate from the government means that properties can be rented out at a level that significantly exceeds the current market rent, thus providing an attractive return on investment.
With only 36.4% of the population renting, there is a strong potential for demand from voucher tenants. Given the median home value of $377,472 and the median income of $88,125, many residents may find it challenging to afford homeownership, making them ideal candidates for rental properties supported by Section 8 vouchers.
In this context, the cost of housing voucher tenants below open-market rates is negligible compared to the benefits. The high FMR reimbursement ensures that landlords receive a rate closer to the $1,520 benchmark, which is well above the current market rate. This makes it financially viable to rent to voucher holders without the risk of losing money on the deal.
Moreover, the stability provided by the Section 8 program can offset any potential risks associated with lower occupancy rates due to the low percentage of renters. The guaranteed payment structure and tenant support services can offer a steady cash flow and reduce vacancy rates, making it an advantageous strategy for investors looking to maximize their yields in ZIP 59843.
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.