Investing in Madison County
Madison County covers 4 rental markets we actively finance in Montana — Ennis, Sheridan, Twin Bridges, Virginia City. Across those markets the median investment basis averages $502,500, a long-term lease averages $2,419/month, and the average all-in PITIA on a DSCR loan at the minimum down payment is $3,489. That produces a county-wide average DSCR ratio near 0.78x.
Basis varies more inside Madison County than the average suggests. Sheridan is the lowest entry point at roughly $375,000, while Sheridan currently models the strongest coverage ratio in the county at 1.07x. When two towns in the same county ratio differently, it is almost always the rent-to-price relationship rather than the rate — the same loan pricing applies county-wide, so the deal is won on which submarket you buy in.