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 | $1,030 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,040 | $606,982 | 0.34% | F |
U.S. Census Bureau data (2024)
The investment landscape for Section 8 properties in ZIP code 59057 presents several challenges that must be carefully considered. Firstly, tenant turnover is a significant concern. The market rent of $471 stands in stark contrast to the Federal Market Rent (FMR) of $1130 for FY 2024, indicating that tenants who qualify for Section 8 vouchers might struggle to afford higher rents if they move out, leading to frequent turnover.
Vacancy exposure is another critical issue. The Days on Market (DOM) data is currently unavailable, which means there's uncertainty regarding how long it takes to fill vacancies. This can be particularly problematic in an area where the typical home value is $604,723 and the median income is $80,571, suggesting that the local economy is robust but may not support a high volume of rental demand. Landlords should anticipate potential difficulties in finding and retaining tenants due to these economic factors.
Deferred maintenance is also a risk factor. With a typical home value of $604,723, landlords need to ensure that their properties meet the standards required by Section 8 programs. Failure to maintain properties adequately can result in penalties or loss of eligibility, which would be costly given the high property values in the area. However, the median income of $80,571 indicates that residents have the financial capacity to pay higher rents, but not necessarily through Section 8 vouchers.
Despite these risks, the 2.8% renter share in ZIP 59057 suggests a relatively high concentration of renters, which typically translates into higher demand for Section 8 vouchers. This can provide some stability in terms of occupancy rates, especially for landlords willing to manage the administrative demands of the program.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.