Location: Broadwater County, MT | Metro: Broadwater 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 | $1,250 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,620 |
| 5 Bedrooms | $3,039 |
| 6 Bedrooms | $3,404 |
| 7 Bedrooms | $3,676 |
| 8 Bedrooms | $3,860 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,650 | $335,588 | 0.49% | F |
| 2BR | $1,800 | $357,842 | 0.5% | F |
| 3BR | $2,320 | $478,957 | 0.48% | F |
| 4BR | $2,620 | $537,440 | 0.49% | F |
U.S. Census Bureau data (2024)
Townsend, MT, located within the Broadwater County, MT HUD Metro FMR Area, offers unique opportunities for landlords and small-portfolio investors when considering a Section 8 portfolio strategy. The ZIP code 59644 stands out as a cash-flow anchor due to the significant spread between the Fair Market Rent (FMR) and the market rent.
The FMR for the Townsend, MT area is set at $1,780 for fiscal year 2026. This is notably higher than the market rent of $1,005, indicating that properties participating in the Section 8 program can command higher rents compared to what might be achieved through traditional market leases. This discrepancy provides a solid foundation for maintaining positive cash flow, even when accounting for the administrative complexities and potential delays associated with Section 8 payments.
In addition to the favorable rent dynamics, the median home value in Townsend, MT is $446,968. While this figure does not directly impact rental strategies, it suggests a stable housing market with relatively consistent property values. This stability can help mitigate risks associated with property depreciation and support long-term investment goals.
The low price-cut share of 0.1% and N/A-day Days on Market (DOM) indicate that the local real estate market is competitive, but not overly so. This means that while landlords might occasionally need to adjust their asking rents to attract tenants, the overall demand for rental properties remains steady. This consistency further supports the idea that Townsend, MT is a reliable cash-flow anchor for a Section 8 portfolio.
The 17.4% renter share and median income of $68,811 provide additional context. These figures suggest a moderate level of rental demand and an average income level that aligns well with the financial expectations of the Section 8 program. While these characteristics do not necessarily define Townsend, MT as a diversifier, they contribute to the overall appeal of the area for a balanced investment portfolio.
In summary, Townsend, MT (ZIP 59644) serves best as a cash-flow anchor within a Section 8 portfolio strategy. The substantial difference between the FMR and market rent ensures a steady stream of income, which is crucial for maintaining profitability and covering operational costs. The stable housing market and moderate rental demand round out the case for why this area is a strong choice for investors seeking reliable returns.
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.