# Montana

### Summary

Montana state is facing challenges to housing affordability. For every 100 low-income renter households, there are 77 units available that are affordable to them. The median household income in the state is $38,917 whereas the median rent in the state $772. Currently, the state is short over 7,136 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.

30.9%

share of renter households

39.8%

share of low-income households

40.3%

share of rent-burdened households

### Renter population data

Renters vs homeowners

| Households             | % share  |
|-----------------------|----------|
| Renter households      | 135,060  | 30.9%    |
| Homeowner households    | 301,421  | 69.1%    |
| Total households       | 436,481  | 100.0%   |

Low-income renter households

| Households                  | % share  |
|----------------------------|----------|
| Extremely low-income ≤30% AMI | 16,326  | 12.1%    |
| Very low-income 31-50% AMI   | 15,190  | 11.2%    |
| Low-income 51-80% AMI        | 22,249  | 16.5%    |
| All low-income households <80% AMI | 53,765 | 39.8%    |

Rent-burdened households

| Households                  | % share  |
|----------------------------|----------|
| Moderately rent-burdened    | 28,437  | 21.1%    |
| 30.0–34.9%                  | 10,535  | 7.8%     |
| 35.0–39.9%                  | 7,727   | 5.7%     |
| 40.0-49.9%                  | 10,175  | 7.5%     |
| Severely rent-burdened      | 26,028  | 19.3%    |
| ≥50.0%                      | 26,028  | 19.3%    |
| All rent-burdened households | 54,465  | 40.3%    |

### Affordable housing shortage

Rent vs median household income

| Median household income $ | Amount ($)  |
|---------------------------|--------------|
| in 2010                    | 26,958      |
| in 2021                    | 38,917      |
| Increase (2010–2021)       | 44.4%       |

| Median rent $             | Amount ($)  |
|---------------------------|--------------|
| in 2010                    | 521         |
| in 2021                    | 772         |
| Increase (2010–2021)       | 48.2%       |

| Supply, demand & shortage  | Units       |
|---------------------------|--------------|
| Supply (current stock)      | 24,380      |
| Demand (total units needed) | 31,516      |
| Shortage                    | 7,136       |
|                               | 7,136       |
| Total shortage              |              |

|                                           | %         |
|-------------------------------------------|-----------|
| 77.4% supply/demand ratio                  |

### QAP document (Qualified Allocation Plan)

QAP

Montana

The QAP is a document that states, and a few local agencies, must develop in order to distribute federal Low Income Housing Tax Credits (LIHTCs), which can be awarded only to a building that fits the QAP’s priorities and criteria. Each QAP must spell out a housing finance agency’s (HFA’s) priorities and specify the criteria it will use to select projects competing for tax credits. The priorities must be appropriate to local conditions.

### Housing news

#### How Fed Rate Cuts Impact the Housing Market

The Federal Reserve’s recent rate cuts will influence the housing market, but the effects won't be immediate. Although lower rates make borrowing more affordable, the ongoing housing shortage and existing conditions in the market remain tough obstacles.

**Key Takeaways:**
- **Lower Mortgage Rates**: Fed rate cuts have already reduced the average 30-year mortgage rate, which dropped from a peak of 7.79% in late 2023 to around 6.2%. This could ease the burden for homebuyers and those refinancing.
- **Home Sales**: As rates decline, more homeowners might be encouraged to sell, which could help alleviate some of the housing market’s stagnation. However, a full recovery of the resale market is expected to be gradual.
- **Ongoing Supply Issues:** Despite lower rates, housing supply shortages will persist, especially in high-demand areas. Supply constraints, driven by zoning restrictions and labor/material shortages, remain a barrier to affordability.

While the Fed’s actions are a positive step toward stabilizing the housing market, broader structural challenges—particularly the lack of new housing supply—will continue to affect the market.

### Shortage statistics for ELI & VLI renters

_S&D ratio = Supply & Demand Ratio_

List of counties

| Name       | Households  | ELI & VLI (<50% AMI) | Rent-burdened | Affordable housing | Shortage of units | S&D ratio |
|------------|-------------|---------------------|----------------|-------------------|------------------|-----------|
| County statistics coming soon... |

### Housing news

#### How Fed Rate Cuts Impact the Housing Market