Location: Judith Basin County, 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 | $930 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $285,958 | 0.43% | F |
| 3BR | $1,690 | $470,193 | 0.36% | F |
| 4BR | $1,860 | $573,680 | 0.32% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 59412 in Belt, Montana, revolves around the significant gap between the Fair Market Rent (FMR) set at $1020 for fiscal year 2024 and the actual market rent reported at $781 according to the Census ACS. This gap amounts to $239, which represents a 30.6% difference between the two figures.
Given that the FMR exceeds the market rent, this scenario presents an opportunity for landlords and small-portfolio investors to capitalize on the higher rental subsidies provided by the Housing Choice Voucher program, commonly known as Section 8. The thesis suggests that accepting voucher tenants can be a strategic yield play, as it allows property owners to receive rents closer to the FMR without the risk of vacancy often associated with higher market rates.
In Belt, where 23.2% of residents are renters and the median home value stands at $400,676, the median household income is $82,955. These figures indicate that while there is a substantial number of renters, the overall economic conditions may limit the ability of many to afford market-rate rents. Consequently, the presence of Section 8 vouchers can serve as a stabilizing factor, ensuring a steady stream of tenants who can afford the rent due to government assistance.
The gap between FMR and market rent also highlights the financial advantage of participating in the Section 8 program. Landlords can secure rental income at a rate above what the local market would typically offer, thus improving their cash flow and investment yields. For example, a landlord renting out a unit at $781 might consider accepting a voucher tenant paying $1020, thereby increasing their monthly revenue by $239 compared to the open-market rate.
However, accepting housing voucher tenants comes with its own set of considerations. While the FMR is higher than the market rent, the administrative burden and potential delays in receiving payments must be weighed against the financial benefits. Additionally, landlords should ensure compliance with HUD standards and regulations to avoid any legal issues that could arise from participation in the Section 8 program.
In summary, the Section 8 thesis for ZIP 59412 is a compelling argument for landlords to leverage the higher subsidy rates to improve their investment returns. With a 30.6% premium over the current market rent, voucher tenants provide a reliable source of income that aligns with the economic realities of Belt, Montana.
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.