Section 8 Fair Market Rent (FMR) for ZIP 59349 - 2027

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

Investment Score for ZIP 59349

Monthly Rent (2BR)

$1,550

Median Price (2BR)

$108,614

1% Rule

1.43%

Annual Yield

17.12%

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	$1,180
1 Bedroom	$1,220
2 Bedrooms	$1,550
3 Bedrooms	$2,150
4 Bedrooms	$2,540
5 Bedrooms	$2,946
6 Bedrooms	$3,300
7 Bedrooms	$3,564
8 Bedrooms	$3,742

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
2BR	$1,550	$108,614	1.43%	A
3BR	$2,150	$185,725	1.16%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,025

Median Household Income

$63,000

Housing Units

550

Renter Percentage

15.5%

Occupancy Rate

80.0%

Renter Occupied

Terry, MT, located in the heart of Montana's rural landscape, offers a unique opportunity for real estate investors interested in the Section 8 housing market. The area is characterized by its small-town charm and a relatively stable economy, which makes it a promising location for those looking to invest in affordable housing.

The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,550. This figure represents the maximum amount that a Section 8 tenant can pay towards their rent, providing a clear benchmark for rental pricing.
The average market rent for Terry, MT, based on Census ACS data, is $596. This indicates that there is a significant gap between the market rent and the FMR, suggesting potential for higher rental income through Section 8 participation.
The median home value in Terry, MT, stands at $136,229. This is a reasonable investment price point, especially considering the potential for rental income that exceeds the market average.
Renters make up 15.5% of the local population, indicating a moderate demand for rental properties. However, the percentage of renters eligible for Section 8 benefits could be higher, given the federal assistance program's focus on low-income families.
The median income in Terry, MT, is $63,000. This suggests that while the area is not affluent, it has a stable economic base that supports a mix of homeowners and renters, including those who may qualify for Section 8 assistance.

The data points indicate that Terry, MT, presents a favorable environment for Section 8 investments due to the substantial difference between the FMR and market rent. Investors can expect to generate above-average rental income relative to property values. The moderate renter share and stable median income support a consistent demand for affordable housing, making it a reliable market for long-term investment strategies.

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.