Location: Big Horn County, MT | Metro: Big Horn County, MT
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 | $970 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $171,706 | 0.74% | D |
| 3BR | $1,750 | $236,679 | 0.74% | D |
| 4BR | $2,120 | $279,914 | 0.76% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 59034, centered around Hardin, MT, highlights a significant financial opportunity for landlords and small-portfolio investors due to the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,280, while the average market rent, as per the Census ACS, stands at $766. This creates a gap of $514, or approximately 67%, in favor of the FMR.
This gap means that voucher tenants can offer a higher rental income compared to what the open market currently provides. For instance, a landlord could receive $1,280 per month through a Section 8 voucher, which is notably above the local market rate. Given that 40.5% of residents in Hardin are renters, there is a substantial pool of potential tenants who might benefit from this program. Moreover, the median income of $60,726 suggests that many residents would qualify for assistance, making Section 8 vouchers an attractive option for securing stable tenancy.
In the context of Hardin's median home value of $213,316, the higher rental income from Section 8 vouchers can significantly enhance the yield on investment properties. Landlords can leverage this higher income to cover maintenance costs, property taxes, and other expenses, thereby improving their overall profitability. Additionally, the consistent payment structure provided by the government ensures a reliable cash flow, reducing the risk of unpaid rent.
However, it is important to note that accepting Section 8 tenants does come with some operational challenges. These include the need for regular inspections and compliance with HUD standards, which can sometimes require additional expenditures. Despite these considerations, the financial benefits of receiving rents closer to the FMR rather than the lower market rates make Hardin, MT, a compelling location for those interested in Section 8 investments.
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.