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 |
|---|---|---|---|---|
| 3BR | $1,760 | $433,077 | 0.41% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 59088 reveals a unique balance between yield and stability, making it an intriguing market for real-estate investors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1240, which is notably higher than the market rent of $907. This suggests a potential for higher rental yields when properties are leased at or near the FMR rate.
However, the median home value in ZIP 59088 stands at $403,296, indicating that property acquisition costs are relatively high. Despite this, the disparity between the FMR and market rent presents a significant opportunity for investors who can secure tenants willing to pay closer to the FMR rate. This could result in a rental income of approximately $333 above the average market rate per unit, enhancing overall investment returns.
Stability in ZIP 59088 is somewhat mixed. With 25.9% of residents being renters, the area has a moderate level of tenant demand. Unfortunately, the data does not provide the number of days on the market (DOM), which would have been useful for assessing how quickly properties can be rented out. However, the median household income of $90,625 suggests that there is a reasonable economic base supporting rental payments, contributing to financial stability.
Given these factors, ZIP 59088 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. While the potential for higher yields exists due to the difference between the FMR and market rent, the relatively high home values and moderate renter population indicate a more stable environment where long-term investments are likely to perform well. Investors should focus on properties that can be leased at or near the FMR of $1240 to maximize their returns while maintaining a solid cash flow.
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.