Section 8 Fair Market Rent (FMR) for ZIP 59029 - 2027

Location: Billings, MT | Metro: Billings, MT HUD Metro FMR Area

Investment Score for ZIP 59029

N/A

Monthly Rent (2BR)

$1,280

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$930
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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,760	$413,668	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

760

Median Household Income

$72,188

Housing Units

326

Renter Percentage

18.2%

Occupancy Rate

94.2%

Renter Occupied

A decision tree for evaluating whether to purchase properties in ZIP code 59029 for Section 8 investment hinges on three key factors. Let's break down the analysis:

1. Does the Fair Market Rent (FMR) of $1210 cover the debt service on a property valued at $395,741?

Yes. The FMR of $1210 is designed to ensure that rental income can support the mortgage and other costs associated with owning a property valued at $395,741. This means the rental income from a Section 8 tenant would be sufficient to meet the financial obligations of the property owner.

2. How does the market rent of $877 compare to the FMR?

Below FMR. With a market rent of $877, which is below the FMR of $1210, there is an opportunity to secure higher rental income through Section 8 vouchers. This could make the property more attractive for landlords looking to maximize their rental revenue.

3. Is there enough demand given that 18.2% of residents are renters and the days on market (DOM) is not available?

It depends. The percentage of renters at 18.2% suggests a moderate level of demand. However, without the DOM data, it's difficult to assess how quickly rental properties are being leased. If the DOM is short, it indicates high demand and faster turnover, which is favorable. Conversely, if the DOM is long, it might suggest slower leasing times and lower demand. Additional research into the local rental market trends is advised to clarify this point.

To summarize, if the landlord is focused solely on covering debt service, the answer is yes due to the FMR being above the market rent. The potential to earn more than the typical market rate is a positive aspect. However, regarding demand, it remains uncertain without DOM data. Landlords should consider these points carefully and conduct further investigation into the local rental market conditions before making an investment decision in ZIP 59029.

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.