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 | $1,250 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,460 |
| 4 Bedrooms | $2,810 |
| 5 Bedrooms | $3,260 |
| 6 Bedrooms | $3,651 |
| 7 Bedrooms | $3,943 |
| 8 Bedrooms | $4,140 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,780 | $379,521 | 0.47% | F |
| 3BR | $2,460 | $479,331 | 0.51% | F |
| 4BR | $2,810 | $570,316 | 0.49% | F |
| 5BR | $3,260 | $691,204 | 0.47% | F |
U.S. Census Bureau data (2024)
ZIP code 59106, located in Billings, MT, falls within the Billings, MT HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 59106 is set at $1,390 for fiscal year 2024, which is lower than the market rent of $1,626. This suggests that 59106 is offering rental properties at a discount compared to the average market rate within the metro area.
The median home value in 59106 is $536,043, which is slightly above the typical home values found in other ZIP codes within the Billings, MT HUD Metro FMR Area. However, the renter share in 59106 is 20.7%, indicating a notable portion of residents are renters rather than homeowners. This combination of a higher-than-average home value and a significant renter population can be indicative of a Section 8 sweet spot.
To further contextualize, typical ZIP codes within the Billings, MT HUD Metro FMR Area might have a more balanced ratio between market rents and FMRs, along with a lower renter share. In contrast, 59106 stands out due to its below-market FMR, suggesting it could be a value pocket for landlords and small-portfolio investors looking to participate in the Section 8 housing voucher program.
The divergence in home values and renter share implies that 59106 offers an opportunity to invest in a slightly pricier neighborhood while still benefiting from the demand for affordable rentals. This makes it particularly attractive for those seeking to balance investment risk and reward within the metro area.
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.