Location: Jefferson County, MT | Metro: Jefferson 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 | $1,050 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,980 | $606,283 | 0.33% | F |
U.S. Census Bureau data (2024)
To understand the economics of Section 8 housing in ZIP code 59638, it's essential to know the SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment, which is set at $1,560 per month for fiscal year 2026. This figure represents the maximum amount the government will reimburse landlords for renting out a unit under the Section 8 program.
The SAFMR does not take into account the local market rent since it is specifically determined for this ZIP code. Therefore, landlords must base their decisions on the SAFMR rather than fluctuating market rates.
A Section 8 voucher holder is required to pay 30% of their adjusted monthly income towards rent. This amount, known as the tenant portion, is then combined with the utility allowance to determine the total reimbursement to the landlord. For instance, if a tenant has an adjusted monthly income of $1,000, they would be expected to contribute $300 towards rent. Utility allowances vary but are typically around $300-$400 for a two-bedroom unit. Thus, the total reimbursement to the landlord could range from $1,860 to $1,960, assuming the tenant portion and utility allowance are added to the SAFMR.
However, it's important to note that the actual reimbursement can never exceed the SAFMR of $1,560. So, even if the combined tenant contribution and utility allowance exceeds this amount, the landlord will only receive up to $1,560 per month for a two-bedroom apartment.
This system creates a reimbursement gap or surplus depending on the local market conditions. In ZIP 59638, where the local market rent data is currently unavailable, landlords should assume that the SAFMR of $1,560 is the ceiling for their rental income from Section 8 vouchers. If the market rent is higher, there will be a gap between what the landlord could potentially earn in the open market and the fixed reimbursement rate under Section 8.
In conclusion, landlords in ZIP 59638 participating in the Section 8 program will receive a maximum of $1,560 per month for a two-bedroom apartment, regardless of the tenant's contribution and utility allowances. This sets a clear expectation for rental income, which may not align with the local market conditions, leading to either a surplus or a gap in revenue compared to non-voucher rentals.
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.