Location: Powell 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 | $870 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,040 | $180,047 | 0.58% | F |
| 2BR | $1,130 | $248,979 | 0.45% | F |
| 3BR | $1,570 | $319,878 | 0.49% | F |
| 4BR | $1,860 | $425,930 | 0.44% | F |
| 5BR | $2,158 | $440,663 | 0.49% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 59722, which includes Deer Lodge, Montana, stands at $62,230. This figure provides insight into the financial capacity of households in the area. The market rate for rent, according to Census ACS data, is $826 per month. Given the median income, it's evident that a significant portion of the population may struggle to afford this rate without allocating a substantial part of their earnings to housing.
In contrast, the Fair Market Rent (FMR) standard set for the metro area in fiscal year 2026 is $1,130. This higher benchmark indicates that the government considers the market rate to be below the average cost of renting a suitable home in the area. For renters, this means they might find it challenging to secure housing that meets the FMR standard without assistance.
With 29.1% of the population being renters and a total population of 5,732, the competition among landlords in Deer Lodge, MT, is relatively low compared to densely populated urban areas. However, the affordability gap between the median income and both the market rent and FMR suggests that many potential tenants will seek rental assistance through programs such as Section 8 vouchers.
The takeaway for landlords considering whether to accept voucher payments versus relying on cash-paying tenants is clear. Given the financial constraints faced by many residents, accepting Section 8 vouchers could significantly enhance the pool of available tenants. While the voucher payment standard of $1,130 is higher than the current market rate, it ensures a steady and reliable income stream. Landlords should weigh the benefits of guaranteed payments against the administrative complexities of participating in the Section 8 program.
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.