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 | $1,140 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,570 |
| 5 Bedrooms | $2,981 |
| 6 Bedrooms | $3,339 |
| 7 Bedrooms | $3,606 |
| 8 Bedrooms | $3,786 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,630 | $298,571 | 0.55% | F |
| 3BR | $2,260 | $399,669 | 0.57% | F |
| 4BR | $2,570 | $444,583 | 0.58% | F |
| 5BR | $2,981 | $509,091 | 0.59% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 59105 in Billings, Montana, for fiscal year 2024 is set at $1,240. This figure is slightly above the market rent, which stands at $1,230 according to ZORI (Zillow Observed Rent Index). Therefore, landlords accepting Section 8 vouchers can expect to break even or have marginal cash flow at the FMR rate, depending on their property's specific expenses and location.
To further analyze the investment potential, consider the median home value in the area, which is $409,865. Using the market rent of $1,230, the rent-to-price ratio for ZIP 59105 is approximately 0.47%. This indicates that the rental income generated from a typical unit in the area would be relatively low compared to the purchase price of a home, suggesting that appreciation might be a stronger driver of returns than cash flow.
The 45-day median Days on Market (DOM) and the 0.2% price-cut share provide insight into the local real estate market's health and the balance between rental and ownership. A short DOM and low price-cut share suggest a stable market where properties sell quickly without significant discounts. This stability supports the idea that rental properties in the area will likely maintain steady occupancy rates and avoid prolonged vacancies.
In summary, while cash flow may be limited due to the close alignment between FMR and market rents, the strong rent-to-price ratio and market stability indicate that appreciation and stability are the most compelling angles for Section 8 investors in ZIP 59105.
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.