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 |
|---|---|---|---|---|
| 1BR | $1,000 | $315,961 | 0.32% | F |
| 2BR | $1,280 | $411,175 | 0.31% | F |
| 3BR | $1,760 | $594,195 | 0.3% | F |
| 4BR | $2,000 | $726,795 | 0.28% | F |
| 5BR | $2,320 | $905,244 | 0.26% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $950 for zip code 59068 (Red Lodge, MT) in fiscal year 2024, landlords can expect to receive a higher subsidy compared to the local market rent of $724, as reported by the Census ACS. This discrepancy suggests a favorable environment for Section 8 participation, allowing property owners to potentially earn above-average rental incomes. The median home value stands at $521,882, indicating a relatively stable and valuable housing market. However, with only 28.1% of residents being renters, the demand for rental properties is moderate, which could impact the number of potential tenants interested in Section 8 units. The median income of $80,962 provides insight into the financial capabilities of local residents, suggesting that many may find it challenging to afford market rents without assistance. Despite the lack of available data on days on market (DOM), the low price-cut share of 0.1% implies that once listed, properties are likely to sell quickly at their asking price, further supporting the notion of a robust real estate market.
Given these figures, it's evident that Red Lodge, MT offers a unique opportunity for landlords and small-portfolio investors who are willing to participate in the Section 8 program. The higher FMR compared to the local market rent allows for competitive pricing while ensuring a steady income stream. Moreover, the stable median home value and quick sales indicate a resilient housing market, which is beneficial for long-term investment strategies. Although the renter share is modest, the median income figure suggests that there is a need for affordable housing options, making Section 8 an attractive choice for filling this gap.
The combination of a favorable subsidy rate, moderate demand for rentals, and a strong overall real estate market makes Red Lodge, MT a viable location for Section 8 investments. For those looking to capitalize on these conditions, participating in the Section 8 program can provide a reliable and consistent revenue source, backed by government support.
Verdict: Suitable for 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.