Section 8 Fair Market Rent (FMR) for ZIP 59301 - 2027

Location: Rosebud County, MT | Metro: Custer County, MT

Investment Score for ZIP 59301

C
Monthly Rent (2BR)
$1,610
Median Price (2BR)
$178,851
1% Rule
0.9%
Annual Yield
10.8%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,160
1 Bedroom$1,230
2 Bedrooms$1,610
3 Bedrooms$2,190
4 Bedrooms$2,470
5 Bedrooms$2,865
6 Bedrooms$3,209
7 Bedrooms$3,466
8 Bedrooms$3,639

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $1,230 $123,257 1% C
2BR $1,610 $178,851 0.9% C
3BR $2,190 $267,495 0.82% C
4BR $2,470 $309,006 0.8% D
5BR $2,865 $380,279 0.75% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
11,643
Median Household Income
$71,332
Housing Units
5,549
Renter Percentage
30.9%
Occupancy Rate
87.8%
Renter Occupied
1,508

The ZIP code 59301, encompassing Miles City, MT, presents a dynamic rental market that is currently experiencing a balance between supply and demand. The Fair Market Rent (FMR) set at $1,610 for the fiscal year 2026 indicates a government benchmark that landlords should aim to meet or slightly exceed to remain competitive. In contrast, the actual market rent stands at $897 according to the Census American Community Survey (ACS), suggesting that the local rental prices are below the federal guideline, possibly due to an oversupply of rental units.

The low price-cut share of 0.1% implies that few landlords are reducing their rents to attract tenants, which could indicate a stable market where properties are generally priced correctly. However, the lack of data on days on market (DOM) makes it challenging to fully assess the speed at which rental properties are being leased. Despite this gap, the median home value of $242,983 provides insight into the overall housing market, reflecting a relatively affordable area for homeownership.

A significant 30.9% of residents are renters, a figure that suggests a substantial portion of the population is not purchasing homes. This high renter share can be indicative of long-term housing pressures, as it points to a persistent demand for rental properties. In markets with a high percentage of renters, there is often a continuous need for rental units, which can be beneficial for landlords and small-portfolio investors looking to capitalize on steady rental income.

The interplay between these factors—FMR, market rent, price-cut share, and renter share—suggests that while the rental market in Miles City, MT is currently balanced, the high proportion of renters may signal ongoing demand for rental properties. Landlords and investors should monitor these metrics closely to understand how the market might evolve, particularly focusing on changes in the renter share and market rent to gauge the balance between supply and demand.

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.