Location: Carter County, MT | Metro: Carter 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 | $880 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $121,861 | 0.94% | C |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 59324, located in Ekalaka, MT, are significant. Firstly, tenant turnover poses a substantial challenge. The market rent in this area is $713, whereas the Fair Market Rent (FMR) for the metro area is $1,090. This discrepancy suggests that landlords may struggle to find tenants willing to pay the higher FMR rate, leading to frequent turnover. Secondly, vacancy exposure is a concern due to the lack of available data on the number of days properties remain on the market before being rented. Lastly, the deferred-maintenance exposure is considerable. With a typical home value of $146,182 and a median income of $57,188, residents might have limited financial capacity to cover maintenance costs, potentially leaving landlords responsible for these expenses.
However, these risks must be weighed against the high renter share in the area, which stands at 29.7%. High renter density often translates into greater demand for rental properties, including those that accept Section 8 vouchers. This demand can help mitigate some of the risks associated with tenant turnover and vacancy exposure.
In conclusion, despite the challenges, the high renter share in Ekalaka, MT, suggests a moderate risk for a first-time Section 8 landlord. The presence of many renters creates a stable environment for voucher usage, but the need for careful management to address maintenance and turnover issues remains critical.
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.