Section 8 Fair Market Rent (FMR) for ZIP 59601 - 2027

Location: Lewis and Clark County, MT | Metro: Jefferson County, MT HUD Metro FMR Area

Investment Score for ZIP 59601

F
Monthly Rent (2BR)
$1,650
Median Price (2BR)
$351,458
1% Rule
0.47%
Annual Yield
5.63%

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$1,150
1 Bedroom$1,320
2 Bedrooms$1,650
3 Bedrooms$2,280
4 Bedrooms$2,390
5 Bedrooms$2,772
6 Bedrooms$3,105
7 Bedrooms$3,353
8 Bedrooms$3,521

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
1BR $1,320 $281,165 0.47% F
2BR $1,650 $351,458 0.47% F
3BR $2,280 $444,489 0.51% F
4BR $2,390 $499,859 0.48% F
5BR $2,772 $585,277 0.47% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
31,728
Median Household Income
$72,290
Housing Units
15,872
Renter Percentage
44.2%
Occupancy Rate
94.4%
Renter Occupied
6,623

The dynamics of the ZIP code 59601, encompassing Helena, Montana, reveal a market in motion, characterized by a delicate balance between supply and demand. The Fair Market Rent (FMR) for the area stands at $1,640 for the fiscal year 2026, while the actual market rent, as measured by Zillow's ZORI, is slightly lower at $1,572. This suggests that rental prices are reflective of the local economy and not significantly inflated.

A 0.2% price-cut share indicates that very few landlords are lowering their rents to attract tenants, implying that the demand for rentals is relatively steady. However, the lack of data on days on market (DOM) makes it challenging to conclusively determine whether supply outpaces demand or vice versa. Nonetheless, the low price-cut share hints at a market where demand meets supply without significant surplus.

The median home value in ZIP 59601 is $434,719, which places it within a moderate range for housing affordability. Given that 44.2% of residents are renters, this ZIP code exhibits a substantial rental market presence. This high renter share can be indicative of long-term housing pressure, suggesting that a considerable portion of the population may find homeownership financially unfeasible or prefer the flexibility of renting over buying.

In a broader context, the high renter share also implies that any economic shifts affecting job availability or income could result in increased housing pressure. As such, landlords and small-portfolio investors should closely monitor local economic trends to anticipate changes in the rental market.

The snapshot provided paints a picture of a balanced yet evolving market. Landlords benefit from stable rental prices, while the significant renter share underscores an ongoing need for affordable housing options. This equilibrium positions 59601 as a market worth watching for both current and potential investors.

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.