Location: Sheridan County, MT | Metro: Sheridan County, MT
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 | $820 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $124,346 | 0.88% | C |
| 3BR | $1,520 | $196,291 | 0.77% | D |
| 4BR | $1,760 | $224,851 | 0.78% | D |
U.S. Census Bureau data (2024)
ZIP 59254, located in Plentywood, MT, within Sheridan County's metro area, serves as an ideal cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,080, which significantly exceeds the current market rent of $750. This $330 monthly spread ensures a consistent positive cash flow for landlords and small-portfolio investors who are willing to participate in the Section 8 program.
The median home value in ZIP 59254 is $163,071, which is relatively low compared to other areas in Montana. This makes it easier for investors to acquire properties at a lower cost while still benefiting from the higher FMR rates offered by the Section 8 program. The program guarantees that tenants will pay a portion of their income towards rent, with the government covering the rest, ensuring that the full FMR rate can be realized even when market rents are lower.
While there isn't specific data on price-cut shares or days on market (DOM), the lack of these figures suggests stability in the local housing market. Stability is crucial for a cash-flow anchor, as it minimizes the risk of sudden changes in rental demand or property values that could disrupt the steady income stream.
The 30.7% renter share indicates that a substantial portion of the population in Plentywood relies on renting, making it a viable market for rental properties. Additionally, the median income of $68,750 provides a reasonable assurance that the local economy supports a stable tenant base, capable of meeting the requirements of the Section 8 program.
In conclusion, ZIP 59254 is best suited as a cash-flow anchor due to the significant spread between the FMR and market rent, along with the stable median home value and renter share. These factors contribute to a predictable and reliable income source for landlords and small-portfolio investors involved in the Section 8 program.
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.