Location: Fergus County, MT | Metro: Fergus County, MT
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 | $1,110 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,110 | $167,542 | 0.66% | D |
| 2BR | $1,450 | $227,952 | 0.64% | D |
| 3BR | $2,000 | $325,091 | 0.62% | D |
| 4BR | $2,380 | $406,904 | 0.58% | F |
| 5BR | $2,761 | $560,681 | 0.49% | F |
U.S. Census Bureau data (2024)
If a landlord is considering purchasing a property in ZIP code 59457 (Lewistown, MT) for Section 8 investment, they should follow this decision tree based on the specific data points provided:
1) Does the Fair Market Rent (FMR) of $1,440 (for the metro area in fiscal year 2026) cover the debt service on a property valued at $298,267?
a) Yes: If the FMR of $1,440 is sufficient to cover the debt service on a property priced at $298,267, then the landlord can proceed to the next step. This indicates that the rental income will be adequate to meet financial obligations.
b) No: If the FMR of $1,440 does not cover the debt service on a property costing $298,267, then the investment would not be advisable. The landlord would need to find properties with lower purchase prices or higher FMRs to ensure financial viability.
2) Is the market rent of $970 (as per Census ACS data) above, at, or below the FMR?
a) Above: If the market rent exceeds the FMR, the landlord can consider other factors since the property can potentially generate higher revenue than required by Section 8 guidelines.
b) At or Below: If the market rent is at or below the FMR, the landlord must ensure that the FMR is enough to cover expenses and maintain profitability. Given the FMR of $1,440, this branch suggests a favorable scenario for Section 8 participation.
3) Are there sufficient renters and days on the market (DOM) to create enough demand for the property?
a) Sufficient Renters: With 39.5% of residents being renters, there is a substantial demand for rental properties in Lewistown. This percentage indicates a healthy rental market.
b) Insufficient Renters: If the percentage of renters were lower, it could signal a less robust rental market. However, given the 39.5%, this branch supports a positive outlook.
c) Days on Market (DOM): The data provided does not include DOM information, which is crucial for assessing how quickly properties are rented out. Without this information, the analysis is incomplete.
i) It Depends: If the DOM is reasonable, indicating quick turnover of rental units, combined with the 39.5% renters, this suggests a viable market. However, if DOM is high, it might indicate challenges in finding tenants, despite the percentage of renters.
In summary, for ZIP 59457 (Lewistown, MT), if the FMR of $1,440 covers the debt service on a $298,267 property and the market rent of $970 is at or below the FMR, the presence of 39.5% renters supports a positive investment decision. However, the lack of DOM data means that the final recommendation hinges on additional market research to confirm tenant acquisition speed.
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.