Location: Teton 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 | $960 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,750 | $410,236 | 0.43% | F |
U.S. Census Bureau data (2024)
A decision tree for whether to buy in ZIP code 59487 for Section 8 investment hinges on three key questions:
1) Does the Fair Market Rent (FMR) of $940 cover the debt service on a property valued at $372,661?
If you can secure a loan with a monthly payment lower than $940, then the answer is yes. This would mean that the FMR is sufficient to cover your mortgage payments and leave room for maintenance and other expenses.
If the monthly debt service exceeds $940, then the answer is no. The FMR would not be enough to sustain the financial obligations of owning a property in this area.
2) Is the market rent of $955 above, at, or below the FMR?
If market rent is above the FMR, the answer is it depends. While you could potentially charge higher rents outside of Section 8, landlords must remember that Section 8 tenants pay only a portion of the rent, typically around 30% of their income, and the rest is subsidized by the government. Therefore, the ability to charge higher market rents is limited when considering Section 8 exclusively.
If market rent is at or below the FMR, the answer is yes. This indicates that the market conditions align well with the Section 8 program, making it easier to find tenants who qualify for the subsidy without the risk of being unable to collect the full rent amount.
3) Are the 12.8% of renters and the unknown days on market (DOM) indicative of enough demand?
If the 12.8% of renters represents a stable and growing tenant pool, and the number of days on market is low, indicating quick turnover, then the answer is yes. A low DOM suggests strong demand and the likelihood of finding qualified Section 8 tenants quickly.
If the 12.8% of renters is part of a shrinking or stagnant market, and the DOM is high, then the answer is no. High DOM values indicate weak demand and difficulty in filling vacancies, which can negatively impact the viability of a Section 8 investment.
If the 12.8% of renters is substantial but the DOM data is unavailable, the answer is it depends. Without knowing the DOM, it's difficult to assess the speed at which properties are rented out. However, if the percentage of renters is high, there might still be enough demand to support a Section 8 investment, provided other factors such as local economic stability and competition are favorable.
In conclusion, the decision to invest in ZIP 59487 for Section 8 properties is contingent upon the answers to these questions. Ensure that the FMR covers your debt service, consider how market rent compares to FMR, and evaluate the demand based on the percentage of renters and DOM. These factors will guide you towards a sound investment decision.
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.