Location: Lewis and Clark County, MT | Metro: Lewis and Clark County, MT HUD Metro FMR Area
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 | $1,420 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $2,040 |
| 3 Bedrooms | $2,820 |
| 4 Bedrooms | $2,950 |
| 5 Bedrooms | $3,422 |
| 6 Bedrooms | $3,833 |
| 7 Bedrooms | $4,140 |
| 8 Bedrooms | $4,347 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,630 | $478,932 | 0.34% | F |
| 2BR | $2,040 | $451,091 | 0.45% | F |
| 3BR | $2,820 | $517,735 | 0.54% | F |
| 4BR | $2,950 | $580,879 | 0.51% | F |
| 5BR | $3,422 | $673,848 | 0.51% | F |
U.S. Census Bureau data (2024)
To strategically incorporate ZIP 59602, located in Helena, MT, within a Section 8 portfolio, one must first understand the unique characteristics of this area. The HUD Metro Fair Market Rent (FMR) for the FY 2026 is set at $2,040 for the metro area. This is notably higher than the market rent of $1,962, indicating a positive spread of $78 per unit. However, the median home value of $526,395 suggests that this is not primarily a rental market but rather an owner-occupied one.
The 0.1% price-cut share and the non-applicable day DOM (Days on Market) indicate that there is little to no need for aggressive pricing strategies to attract tenants. Properties in this ZIP code tend to be rented out without significant discounts, which is beneficial for maintaining high rental yields.
The median income of $92,985 in ZIP 59602 is relatively high, which supports the notion that tenants here can afford rents closer to the HUD FMR. With a 15.9% renter share, the majority of residents own their homes, making this area less dependent on rental properties for housing needs.
ZIP 59602 should be considered a diversifier in a Section 8 portfolio strategy. Here's why:
The positive spread between the HUD FMR and the market rent ensures that properties in this area can generate above-average cash flow when compared to the local rental market. This makes it an attractive addition for landlords looking to balance their portfolios with units that offer better returns.
The high median income indicates that tenants are likely to be financially stable and have a lower risk of defaulting on rent payments. This stability can contribute positively to the overall performance of a Section 8 portfolio.
The low renter share and median home value suggest that the property values in this area are less volatile compared to purely rental markets. For investors who are concerned about property depreciation or rapid changes in market conditions, ZIP 59602 provides a more stable environment.
In summary, ZIP 59602 offers a mix of solid cash flow potential and financial stability for tenants, making it an excellent diversifier for a Section 8 portfolio. It balances the need for reliable income streams with the security of investing in a region where property values are less likely to fluctuate dramatically.
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.