Section 8 Fair Market Rent (FMR) for ZIP 59422 - 2027

Location: Teton County, MT | Metro: Teton County, MT

Investment Score for ZIP 59422

Monthly Rent (2BR)

$1,300

Median Price (2BR)

$241,183

1% Rule

0.54%

Annual Yield

6.47%

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	$990
1 Bedroom	$1,150
2 Bedrooms	$1,300
3 Bedrooms	$1,800
4 Bedrooms	$2,170
5 Bedrooms	$2,517
6 Bedrooms	$2,819
7 Bedrooms	$3,045
8 Bedrooms	$3,197

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	$1,300	$241,183	0.54%	F
3BR	$1,800	$321,435	0.56%	F
4BR	$2,170	$376,009	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,938

Median Household Income

$67,500

Housing Units

1,340

Renter Percentage

29.2%

Occupancy Rate

83.0%

Renter Occupied

325

A decision tree for considering whether to invest in ZIP code 59422 (Choteau, MT) for Section 8 properties involves three key questions.

1. Does the Fair Market Rent (FMR) of $1,300 cover the debt service on a $295,634 property?

No: The FMR of $1,300 is insufficient to cover the typical debt service costs associated with a property valued at $295,634. Debt service includes mortgage payments, property taxes, insurance, and maintenance. Given the relatively low FMR compared to the property value, it's unlikely that a landlord could break even, let alone make a profit, on such an investment.

2. Is the market rent of $710 above, at, or below the FMR?

Below: The market rent of $710 is significantly below the FMR of $1,300. This suggests that there is a gap between what the market can bear and what the government is willing to pay under the Section 8 program. Landlords who rely solely on market rents would likely struggle to meet their financial obligations, while those participating in Section 8 may find themselves in a better position.

3. Are the 29.2% renters and N/A-day days on market (DOM) indicative of sufficient demand?

It Depends: With 29.2% of residents being renters, there is a notable but not overwhelming demand for rental housing. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties are rented out. In a scenario where DOM is low, indicating quick turnover, the 29.2% figure might be sufficient. Conversely, if DOM is high, suggesting slow turnover, this percentage may indicate weak demand.

In summary, ZIP 59422 presents a challenging environment for landlords interested in Section 8 investments due to the low FMR relative to property values and the market rent falling well below the FMR. Demand for rentals exists but requires further investigation into the DOM to determine its strength. Participation in Section 8 could offset some risks posed by low market rents, but the overall financial viability remains questionable without additional supportive factors.

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.