Location: Billings, MT | Metro: Billings, MT HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,760 | $432,146 | 0.41% | F |
U.S. Census Bureau data (2024)
950 is the Fair Market Rent (FMR) for ZIP code 59006 as of fiscal year 2024, indicating the maximum amount Section 8 tenants can be expected to pay for housing. Despite the N/A market rent data, which suggests limited availability or reporting issues, the median home value stands at 384,270, reflecting the overall cost of homeownership in the area. With a 10.9% share of renters in the population, it's evident that a significant portion of residents rely on rental properties, including those under government assistance programs. The median income of 53,304 provides insight into the economic status of the residents, which is crucial for understanding potential tenant qualifications and financial stability. Given the N/A-day Days on Market (DOM) and N/A% price-cut share, there appears to be a lack of comprehensive data on the speed of property sales and the frequency of price reductions, possibly due to low transaction volumes or other factors.
Investors looking to enter the Section 8 market in ZIP code 59006 should focus on properties that can be rented out for close to the 950 FMR, ensuring they can cover their costs and potentially earn a profit. The relatively high median home value of 384,270 suggests that the area is desirable, but it also means that maintaining properties at a standard acceptable for Section 8 may require higher initial investments. The 10.9% renter share indicates a moderate demand for rental units, while the median income figure of 53,304 can help gauge the likelihood of tenants being able to contribute to the rent without undue hardship.
The incomplete DOM and price-cut share data points highlight the need for thorough local market research before making investment decisions. However, the presence of a stable median income and a defined FMR makes the area attractive for investors willing to navigate the specific challenges of the Section 8 program.
Verdict: Section 8 viable with careful property selection and maintenance to meet the 950 FMR threshold.Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.