Location: Treasure County, MT | Metro: Rosebud 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 | $1,050 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $171,199 | 0.82% | C |
| 3BR | $1,930 | $279,666 | 0.69% | D |
| 4BR | $2,260 | $309,416 | 0.73% | D |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP code 59327 under the Section 8 program are significant. Firstly, tenant turnover is a critical issue. The market rent stands at $828, which is far below the Federal Market Rent (FMR) of $1,350 for the fiscal year 2026 in the metropolitan area. This disparity can lead to frequent tenant changes, as those who qualify for Section 8 may struggle to afford higher rents when they outgrow their vouchers.
Vacancy exposure is another concern. The average days on market (DOM) is not available, indicating that there might be periods where properties remain vacant longer than expected. Given the low market rent relative to the FMR, it can take time to find tenants willing to pay the lower rate, especially if they are looking for larger units.
Deferred maintenance is a significant risk factor, particularly considering the typical home value of $223,165 and the median income of $52,639. Landlords must be prepared to invest in property upkeep, as tenants receiving Section 8 assistance may not have the financial means to cover additional costs or damages. Without regular maintenance, the property's value could depreciate, leading to long-term financial losses.
Despite these challenges, the high renter share of 34.8% offers a silver lining. High renter density typically translates into robust demand for rental housing, including those supported by Section 8 vouchers. This demand can help mitigate the risk of vacancies and ensure a steady stream of tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.