Location: Madison County, MT | Metro: Bozeman, MT MSA
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 | $1,580 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $2,230 |
| 3 Bedrooms | $3,080 |
| 4 Bedrooms | $3,690 |
| 5 Bedrooms | $4,280 |
| 6 Bedrooms | $4,794 |
| 7 Bedrooms | $5,178 |
| 8 Bedrooms | $5,437 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,230 | $846,485 | 0.26% | F |
| 3BR | $3,080 | $1,502,801 | 0.2% | F |
| 4BR | $3,690 | $2,947,342 | 0.13% | F |
| 5BR | $4,280 | $7,241,242 | 0.06% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for Section 8 landlords in ZIP code 59716, located in Big Sky, MT, are significant. First, tenant turnover poses a substantial challenge, as the market rent of $1,341 is notably lower than the Fair Market Rent (FMR) of $2,310 for the fiscal year 2026 in the metropolitan area. This disparity suggests that tenants may be drawn to higher-paying opportunities outside of Section 8, leading to frequent moves and high turnover rates.
Vacancy exposure is another concern, though the Days on Market (DOM) data is not available, indicating that there might be irregularities in the rental market. The absence of this figure makes it difficult to predict how long properties might remain vacant, which can be a costly issue for landlords.
Deferred maintenance is also a risk factor. With a typical home value of $1,856,393 and a median income of $141,716, landlords must ensure that their properties meet the required standards without overextending their financial resources. Maintaining such high-value homes can be expensive, especially when the income of the tenants is relatively lower compared to the property's value.
However, these risks are somewhat mitigated by the high renter share of 8.9%. In areas with a high concentration of renters, there tends to be a greater demand for housing vouchers, which can stabilize the rental income for landlords. Despite the challenges, the presence of a substantial number of renters suggests a robust market for Section 8 tenancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.