Location: Silver Bow County, MT | Metro: Deer Lodge County, MT
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 | $930 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,040 | $216,370 | 0.48% | F |
| 2BR | $1,280 | $255,566 | 0.5% | F |
| 3BR | $1,780 | $346,132 | 0.51% | F |
| 4BR | $1,970 | $393,095 | 0.5% | F |
| 5BR | $2,285 | $529,712 | 0.43% | F |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 59711 centers around the significant disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area for fiscal year 2026 is set at $1,240, while the Census ACS reports the current market rent at $696. This creates a gap of $544 per month, which equates to approximately 85% of the market rent being subsidized by the government.
In this scenario, where the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this gap to maximize their yields. By accepting Section 8 tenants, they can ensure a steady stream of income that is significantly higher than what they would typically receive from the open market. The government pays the difference between the tenant's portion (usually 30% of their income) and the FMR, thus covering the majority of the rent. This makes it an attractive option for investors looking to capitalize on the financial support provided by the housing voucher program.
To put this into perspective, the context of Anaconda, MT, reveals that only 25.8% of residents are renters, indicating a relatively low demand for rental properties compared to homeownership. Additionally, the median home value stands at $300,466, suggesting a robust real estate market. However, the median income of $58,157 highlights the economic challenges faced by many residents, making affordable housing solutions like Section 8 crucial.
For those who might be concerned about the potential drawbacks of renting to voucher tenants, it's important to note that the financial structure of Section 8 ensures that landlords receive timely payments. The subsidy effectively bridges the gap between the lower market rent and the higher FMR, making it possible for landlords to maintain profitability even when rents are below open-market rates.
In conclusion, the gap between FMR and market rent in ZIP 59711 presents a clear opportunity for yield enhancement through Section 8 participation. Landlords should consider the benefits of this government-backed program, especially given the local economic conditions and the high percentage of rent covered by the subsidy.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.