Location: Great Falls, MT | Metro: Great Falls, MT MSA
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 | $870 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $890 | $181,693 | 0.49% | F |
| 2BR | $1,160 | $241,865 | 0.48% | F |
| 3BR | $1,610 | $292,334 | 0.55% | F |
| 4BR | $1,840 | $326,918 | 0.56% | F |
| 5BR | $2,134 | $357,719 | 0.6% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Section 8 properties in ZIP code 59401, Great Falls, Montana, might raise several valid concerns. Let's address these points directly using the available data.
Objection 1: Will Fair Market Rent (FMR) of $910 for the zip code in fiscal year 2024 cover the mortgage on a $284,467 home?
The FMR of $910 does not directly indicate the mortgage payment capacity. To determine if it covers a mortgage, we need to calculate the potential monthly mortgage payment based on typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage with an interest rate of 4%, the monthly mortgage payment for a $284,467 home would be approximately $1,360. This means that the FMR of $910 alone would not cover the mortgage. However, landlords can also receive a Housing Assistance Payment (HAP) contract, which adjusts the rent to ensure it covers the mortgage. The HAP contract is designed to make up the difference between the FMR and the mortgage payment.
Objection 2: Is there enough renter demand at 44.6%?
The rental vacancy rate of 44.6% suggests a significant portion of homes are rented, indicating moderate demand. However, a 44.6% vacancy rate is relatively high and could be a cause for concern. It implies that nearly half of the rental units are unoccupied, which might suggest over-supply or difficulty in finding tenants. Landlords should consider local economic conditions and job markets to gauge the stability of this demand. Additionally, the Section 8 program provides a steady stream of tenants who are pre-screened and have their rent subsidized, which can mitigate some of the risks associated with higher vacancy rates.
Objection 3: Will vouchers keep pace with $1,047 market rents?
The current market rent of $1,047 exceeds the FMR of $910, which could be a point of contention. However, the Section 8 voucher system aims to adjust the HAP contract amounts to align with market rents, ensuring that the subsidy keeps pace with inflation and market conditions. While there is no guarantee that the adjustment will perfectly match the market rent every year, historical trends show that the HAP contracts generally increase to reflect changes in market rents. Investors should monitor the annual adjustments closely to ensure they remain financially viable.
In summary, while the FMR of $910 does not cover the mortgage on a $284,467 home, the HAP contract can make up the difference. The 44.6% vacancy rate indicates moderate demand but also some risk, which can be mitigated by the stability of the Section 8 program. Lastly, though market rents are currently higher than the FMR, the HAP contract system is designed to adjust accordingly, maintaining financial feasibility for landlords.
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.