Location: Silver Bow 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 | $1,080 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,330 |
| 5 Bedrooms | $2,703 |
| 6 Bedrooms | $3,027 |
| 7 Bedrooms | $3,269 |
| 8 Bedrooms | $3,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,180 | $166,494 | 0.71% | D |
| 2BR | $1,420 | $232,377 | 0.61% | D |
| 3BR | $1,970 | $318,656 | 0.62% | D |
| 4BR | $2,330 | $390,059 | 0.6% | F |
| 5BR | $2,703 | $498,945 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 59701 in Butte, MT, is situated in a neighborhood that is part of a city with a total population of 34,232. Approximately 30.3% of the residents are renters, indicating a significant demand for rental properties. The median household income in this area is $60,437, which suggests a middle-class community capable of supporting a range of housing options. The median home value in ZIP 59701 is $276,196, reflecting a moderate cost of living and property investment environment.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,420. This figure represents the government's benchmark for rental affordability and is used to determine eligibility for programs such as Section 8. In contrast, the actual market rent, as measured by the Zillow Rent Index (ZORI), stands at $1,302. This indicates that the market rent is slightly below the FMR, suggesting that there could be opportunities for landlords to offer competitive rates while still benefiting from the higher subsidy levels.
Given these economic conditions, ZIP 59701 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the alignment between the market rent and the FMR provides a stable income stream with minimal risk. However, for those interested in a more active approach, the potential to increase rents towards the FMR level without significantly deterring tenants can offer a chance to enhance property values and returns on investment.
In summary, ZIP 59701 presents a balanced opportunity for Section 8 investors. With a substantial rental population and moderate property values, it offers a viable setting for both passive and active investment strategies. The current market rent being lower than the FMR also opens up possibilities for strategic pricing adjustments, making it a worthwhile consideration for both types of 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.