Location: Madison County, MT | Metro: Beaverhead 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 | $1,040 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,870 |
| 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 | $1,090 | $241,588 | 0.45% | F |
| 2BR | $1,390 | $297,885 | 0.47% | F |
| 3BR | $1,870 | $401,827 | 0.47% | F |
| 4BR | $2,330 | $493,824 | 0.47% | F |
| 5BR | $2,703 | $553,906 | 0.49% | F |
U.S. Census Bureau data (2024)
Dillon, MT, ZIP 59725, is a small town with a total population of 8,343 residents. Approximately 36.0% of these residents are renters, indicating a modest demand for rental properties. The median household income in this area is $61,335, which suggests a middle-class community. The median home value stands at $392,700, reflecting a stable housing market.
Moving into the specifics of rent economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,350. This figure is significantly higher than the current market rent of $842, as reported by the Census American Community Survey. This disparity presents an opportunity for landlords and small-portfolio investors to capitalize on the potential increase in rental rates as the market adjusts towards the FMR.
Given these conditions, ZIP 59725 is suitable for both hands-off voucher operators and hands-on value-add buyers. For those preferring a hands-off approach, the difference between the FMR and the current market rent indicates a strong likelihood of Section 8 vouchers being utilized, ensuring steady income. On the other hand, for hands-on investors looking to add value, the current lower market rent suggests room for improvement through property enhancements, potentially increasing rental income closer to the FMR level.
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.