Location: Hill County, MT | Metro: Blaine 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 | $1,010 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,080 | $100,004 | 1.08% | B |
| 2BR | $1,320 | $179,130 | 0.74% | D |
| 3BR | $1,830 | $241,928 | 0.76% | D |
| 4BR | $1,940 | $277,350 | 0.7% | D |
| 5BR | $2,250 | $345,392 | 0.65% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering Havre, MT (ZIP 59501) might raise several objections regarding the viability of investing in properties that participate in the Section 8 program. Let's address these concerns directly using the available data.
Will Fair Market Rent (FMR) of $1,320 (metro FY 2026) cover the mortgage on a $232,111 home?
The FMR of $1,320 per month in Havre, MT, is the maximum amount that a landlord can charge for a Section 8 rental agreement. To determine if this will cover the mortgage on a home priced at $232,111, we need to calculate the potential monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an average interest rate of 4.5%, the monthly mortgage payment would be approximately $1,150. This means that the FMR does indeed cover the mortgage payment, leaving a small margin for property taxes, insurance, and maintenance costs.
Is there enough renter demand at 31.5%?
The 31.5% figure likely refers to the percentage of households that rent in Havre, MT. While this is a relatively low percentage compared to larger metropolitan areas, it does not necessarily indicate insufficient demand. The actual number of renters can still support a few dedicated Section 8 units. However, the data does not provide a direct measure of demand for subsidized housing specifically. Therefore, while there is a base of renters, the specific demand for Section 8 properties cannot be quantified solely by this statistic.
Will vouchers keep pace with market rents of $969?
The average market rent of $969 is lower than the FMR of $1,320, suggesting that vouchers should keep pace with the typical market rent in Havre, MT. However, the key concern is whether the voucher amounts will increase in line with any future rise in market rents. The data provided does not offer projections for future voucher increases. Thus, while current voucher levels appear sufficient, long-term sustainability depends on how well future adjustments match inflation and market conditions.
In summary, the FMR in Havre, MT, is sufficient to cover the mortgage on a home priced at $232,111, but the specific demand for Section 8 properties remains unclear. Additionally, current voucher levels are adequate for the market rent, though their ability to maintain parity with future rent increases is uncertain without additional data.
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.