Location: Stillwater County, 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 | $1,040 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,070 |
| 5 Bedrooms | $2,401 |
| 6 Bedrooms | $2,689 |
| 7 Bedrooms | $2,904 |
| 8 Bedrooms | $3,049 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,040 | $202,957 | 0.51% | F |
| 2BR | $1,310 | $278,346 | 0.47% | F |
| 3BR | $1,810 | $366,307 | 0.49% | F |
| 4BR | $2,070 | $450,021 | 0.46% | F |
| 5BR | $2,401 | $593,411 | 0.4% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 59044, Laurel, MT, might raise several valid concerns regarding the feasibility of investing in this area. Let's address these concerns using available data.
Objection 1: Will FMR $1,130 (zip FY 2024) cover the mortgage on a $370,524 home?
The Fair Market Rent (FMR) for a one-bedroom apartment in ZIP 59044 for fiscal year 2024 is set at $1,130. This figure represents the maximum amount that a tenant could be expected to pay for a rental unit. However, the FMR does not directly correlate to the mortgage payment on a property valued at $370,524. To accurately determine if the FMR can cover the mortgage, we need to consider the interest rate and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly mortgage payment for a $370,524 home would be approximately $1,983. Clearly, the FMR of $1,130 falls short of covering this mortgage payment. Therefore, investors must rely on other income sources or have significant capital to manage the financial gap.
Objection 2: Is there enough renter demand at 27.9%?
The percentage of renter-occupied housing units in ZIP 59044 is 27.9%. This indicates that a little over a quarter of the housing stock is rented out. While this figure suggests a moderate level of demand, it also implies that the majority of residents own their homes. For landlords and small-portfolio investors, this means the pool of potential tenants is limited compared to areas with higher percentages of renters. It's important to note that despite the lower percentage of renters, the demand for rental properties can still be strong if the supply is low. However, the data alone does not provide a complete picture of the local rental market dynamics.
Objection 3: Will vouchers keep pace with $1,144 market rents?
The average market rent for a one-bedroom apartment in ZIP 59044 is $1,144. The Housing Choice Voucher Program, commonly known as Section 8, aims to help low-income families afford decent, safe, and sanitary housing. However, whether the vouchers will cover the market rents depends on the specific voucher amount allocated to the area. Without the exact voucher amounts for ZIP 59044, it's difficult to definitively state if they will keep pace with the market rents. Generally, voucher amounts are adjusted annually based on the HUD's Fair Market Rents, but they often do not reach the full market value, especially in areas where the cost of living is relatively high. Investors should check the latest voucher guidelines for ZIP 59044 to ensure they align with their rental pricing strategies.
In summary, while ZIP 59044 presents certain challenges such as the FMR not covering the mortgage on a $370,524 home and a relatively low percentage of renters, the actual viability of investment depends on a variety of factors including the local housing market conditions and the specifics of the Section 8 program in the area. Due diligence is recommended before making any investment decisions.
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.