Location: Meagher 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 | $1,120 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,580 |
| 5 Bedrooms | $2,993 |
| 6 Bedrooms | $3,352 |
| 7 Bedrooms | $3,620 |
| 8 Bedrooms | $3,801 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,580 | $279,111 | 0.57% | F |
| 3BR | $1,940 | $358,199 | 0.54% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 59645, White Sulphur Springs, MT, reveals an interesting dynamic between federally subsidized rents and market rates. Using the annualized Fair Market Rent (FMR) for a two-bedroom property at $1,530 per month (as of FY 2026), the implied gross yield for a property in this area would be approximately 5.78%. This calculation is derived by multiplying the monthly FMR by 12 months, resulting in an annual income of $18,360, and then dividing that figure by the median home value of $317,505.
In contrast, using the market rent figure of $1,269 per month (based on Census ACS data), the implied gross yield drops significantly to about 4.79%. This lower yield is calculated similarly by taking the annual market rent ($15,228) and dividing it by the median home value ($317,505).
The difference in gross yields highlights the financial benefits of participating in the Section 8 program over relying solely on market rents. However, the reality of the situation must also consider the local rental market dynamics. With a renter density of 23.7%, there is a relatively low demand for rental properties, suggesting that landlords might face challenges in finding tenants willing to pay the higher Section 8 rate. This low renter density implies that the market rent scenario may be more realistic for many landlords, especially since the Days on Market (DOM) data is not available, making it difficult to assess how quickly properties can be leased at either rate.
In conclusion, while the Section 8 program offers a higher gross yield of 5.78% compared to the market rate yield of 4.79%, the actual performance may lean towards the market rate due to the limited rental market in White Sulphur Springs, MT. Landlords should carefully weigh these factors when considering participation in the Section 8 program for their investment properties.
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.