Location: Phillips County, MT | Metro: Phillips 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 | $780 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $171,183 | 0.6% | F |
| 3BR | $1,410 | $254,148 | 0.55% | F |
| 4BR | $1,680 | $306,784 | 0.55% | F |
| 5BR | $1,949 | $341,174 | 0.57% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $980 for ZIP 59538 (Malta, MT) in fiscal year 2026 will sufficiently cover the mortgage on a home valued at $240,413. To assess this, consider that the typical mortgage payment for a home in this price range, assuming a 30-year fixed-rate mortgage at an average interest rate, would be around $1,100. This means that the FMR of $980 would fall short by approximately $120 per month. However, it's important to note that FMR is just one metric; actual rental income could vary based on the condition and location of the property.
The investor may also wonder if there is sufficient demand among renters given that only 29.4% of the population in ZIP 59538 rents their homes. While this percentage indicates a smaller pool of potential tenants compared to areas with higher rental rates, it does not necessarily mean that demand is low. The local economy and job market play significant roles in sustaining rental demand. Additionally, the presence of institutions such as colleges or military bases can drive up rental needs regardless of the overall percentage of renters.
Another concern is whether Housing Choice Vouchers will keep pace with market rents, which currently stand at $631. The voucher program aims to ensure that families do not pay more than 30% of their adjusted income for housing. If the average voucher amount in the area is less than $631, landlords might face a shortfall. However, the U.S. Department of Housing and Urban Development adjusts voucher amounts periodically to reflect changes in the cost of living and market conditions. It's crucial to monitor these adjustments to anticipate any gaps between voucher payments and market rents.
While the data provides a snapshot of the situation, it does not account for variables such as the fluctuation of mortgage rates, changes in the local economy, or shifts in tenant preferences. These factors must be considered when making investment decisions. Moreover, the data does not include specifics about vacancy rates or the competition from other rental properties, which are also critical in determining the viability of rental investments.
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.