12-Unit USDA RD Apartment
New
For Sale
$1,130,000
2465 2nd Street, Worden, MT 59088
Established rental history with approximately nine years remaining in the USDA Rural Development program.
Property Size8,272 SF
Days on Market5
Property Features for 2465 2nd Street
General Information
Standard status
Active
Size
8,272 SF
Property subtype
Apartment
Additional Details
Multifamily Units
12
Taxes and HOA fees
Annual Taxes
$3,327
Building Details
Building Size
8,272 SF
Year Built
1980
Listing Agency:
Keller Williams Yellowstone Pr
(406) 210-0136
Listed By:
Hannah Reno · License #RRE-BRO-LIC-98858
(406) 210-0136
Source:
Rehubbillings
Added: Aug 16
Changed: Aug 20
Last Checked: Aug 20 at 6:53AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Keller Williams Yellowstone Pr
Investment Insights
Based on property information with market context.
Located at 2465 2nd Street in Worden, Montana, this 12-unit apartment property was built in 1980 and has an established rental history. The asset participates in the USDA Rural Development program, with approximately 9 years remaining, supporting continued operation within that program and its affordable-housing framework.
The property is positioned in the Worden community with access to Billings and surrounding Yellowstone County amenities. It is being marketed alongside 2467 2nd Street, creating an opportunity to acquire additional multifamily units at the same location. USDA Rural Development requirements, rental assistance, transfer provisions, and program restrictions should be verified by the buyer.
The property is positioned in the Worden community with access to Billings and surrounding Yellowstone County amenities. It is being marketed alongside 2467 2nd Street, creating an opportunity to acquire additional multifamily units at the same location. USDA Rural Development requirements, rental assistance, transfer provisions, and program restrictions should be verified by the buyer.
Key Highlights
- 12‑unit apartment property built in 1980
- Approximately 9 years remaining in the USDA Rural Development program
- Established rental history
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$73,075
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.47%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,461,500
$1.5M
Cap Rate 7%
$1,043,929
$1.0M
Cap Rate 9%
$811,944
$811.9K
Market Conditions
NOI Build-Up for 8,272 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$141.9K $17.16/SF
− Vacancy
−$9.1K −$1.10/SF
EGI
$132.9K $16.06/SF
− OpEx
−$59.8K −$7.23/SF
NOI
$73.1K $8.83/SF
Area
Yellowstone County, MT
Vacancy
6.40%
Lease Rate
$17.16 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,461,500
Cap Rate 7%
$1,043,929
Cap Rate 9%
$811,944
Alternative Uses
Best Use
Apartment 5plus
$1.04M
$913.4K – $1.22M
NOI $73,075 @ 7.0% cap · market cap 6.47%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.80M
$1.57M – $2.10M
NOI $125,787 @ 7.0% cap · market cap 11.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
12
Residential units
Location Intelligence
Trade Area within ½ mile
50
Businesses Nearby
Explore this area
Business Placement
Demographics for 59088, MT
1,272
Population
467
Households
2.7
Avg Household Size
45
Median Age
32%
College-Educated
89%
High-School Grad
349.3 sq mi
ZIP Area
4
Density / Sq Mi
$75,000
Median Household Income
$36,181
Median Earnings
$961
Median Rent
$226,000
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Established rental history with approximately nine years remaining in the USDA Rural Development program.
Where is this apartment building located?
The property is located at 2465 2nd Street Worden, MT.
What is the asking price?
The asking price for this property is $1,130,000.
What are key features of this property?
This property features: 12‑unit apartment property built in 1980; Approximately 9 years remaining in the USDA Rural Development program; Established rental history
