Section 8 Fair Market Rent (FMR) for ZIP 59425 - 2027

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

Investment Score for ZIP 59425

D
Monthly Rent (2BR)
$1,300
Median Price (2BR)
$163,621
1% Rule
0.79%
Annual Yield
9.53%

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$1,120
2 Bedrooms$1,300
3 Bedrooms$1,770
4 Bedrooms$2,090
5 Bedrooms$2,424
6 Bedrooms$2,715
7 Bedrooms$2,932
8 Bedrooms$3,079

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 $163,621 0.79% D
3BR $1,770 $269,591 0.66% D
4BR $2,090 $310,403 0.67% D
5BR $2,424 $361,480 0.67% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
3,717
Median Household Income
$49,805
Housing Units
1,729
Renter Percentage
35.2%
Occupancy Rate
82.2%
Renter Occupied
500

The rent math in ZIP 59425, located in Conrad, MT within the Teton County, MT metro area, does not align favorably for potential landlords. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,300. However, the actual market rent reported by the Census Bureau's American Community Survey (ACS) is significantly lower at $913. This discrepancy suggests that landlords may struggle to find tenants willing to pay the higher FMR rate.

Acquisition costs in this ZIP code are relatively low, with a median home value of $252,932. Despite this affordability, the lack of specific data on Days on Market (DOM) and the percentage of homes needing price cuts indicates a stable housing market, but it also means there isn't a high volume of distressed properties available for purchase. Landlords should consider these factors when evaluating the cost of entry into this market.

Tenant demand is moderate in ZIP 59425, with a total population of 3,717 and a renter share of 35.2%. While the renter share suggests a reasonable pool of potential tenants, the small overall population limits the size of the rental market. Landlords will need to focus on attracting and retaining tenants through competitive pricing and property quality.

Verdict: The ZIP 59425 presents a challenging environment for landlords due to the mismatch between the high FMR and the lower market rent. Acquisition costs are manageable, but the limited population and moderate renter share suggest that the rental market is small. For small-portfolio investors, the key to success will be offering competitive rents and maintaining high-quality properties to ensure occupancy rates.

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.