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 | $1,440 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,850 |
| 4 Bedrooms | $3,250 |
| 5 Bedrooms | $3,770 |
| 6 Bedrooms | $4,222 |
| 7 Bedrooms | $4,560 |
| 8 Bedrooms | $4,788 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,060 | $373,564 | 0.55% | F |
| 3BR | $2,850 | $472,901 | 0.6% | D |
| 4BR | $3,250 | $540,531 | 0.6% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 59079, located in Shepherd, MT, hinges on an analysis of its financial metrics: the Fair Market Rent (FMR), median home value, and demographic stability factors such as the percentage of renters, days on market (DOM), and median household income.
Yield Analysis: The FMR for ZIP 59079 stands at $1,150 for the fiscal year 2024, which is notably lower than the market rent of $1,744. This discrepancy suggests that there could be opportunities for landlords to offer competitive rents while still achieving decent yields. However, the median home value of $462,626 indicates a relatively high investment cost, which must be weighed against potential rental income. For instance, if a property is rented out at the market rate of $1,744 per month, it would generate approximately $20,928 annually, assuming no vacancy periods. Given the high median home value, the annual rental income represents a modest yield of about 4.5%, calculated as $20,928 divided by $462,626 and multiplied by 100. This yield is not exceptionally high, suggesting that Shepherd, MT, does not qualify as a high-yield market.
Stability Analysis: Stability can be gauged by the percentage of renters, the typical days on market for properties, and the median household income. In ZIP 59079, only 4.2% of the population are renters, which implies a predominantly owner-occupied community. This low percentage of renters could indicate a less stable rental market, as there might not be a robust demand for rentals. Additionally, the median household income of $68,047 is relatively low compared to national averages, which could further impact the stability of rental income. The lack of data on days on market (DOM) makes it challenging to assess the liquidity of the real estate market in this area, but it is reasonable to assume that with a low percentage of renters, the market may not be very liquid.
Based on these figures, ZIP 59079 leans towards being a low-yield and potentially low-stability market. The modest rental income relative to the high cost of property acquisition, combined with the low percentage of renters and limited household income, suggests that it is not ideal for short-term speculative investments aimed at maximizing immediate returns. Instead, it aligns more closely with a steady-cashflow zone, where long-term investment strategies focusing on capital appreciation rather than high rental yields may prove more fruitful.
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.