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 | $1,490 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $2,140 |
| 3 Bedrooms | $2,960 |
| 4 Bedrooms | $3,540 |
| 5 Bedrooms | $4,106 |
| 6 Bedrooms | $4,599 |
| 7 Bedrooms | $4,967 |
| 8 Bedrooms | $5,215 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,140 | $478,943 | 0.45% | F |
| 3BR | $2,960 | $624,182 | 0.47% | F |
| 4BR | $3,540 | $842,045 | 0.42% | F |
| 5BR | $4,106 | $1,011,120 | 0.41% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP code 59741, located in Manhattan, MT, presents a nuanced picture that balances pricing power with rental dynamics. The median home value stands at $661,786, indicating a robust housing market. With only 0.2% of listings experiencing reductions, it's evident that sellers maintain significant leverage over buyers, suggesting that pricing power will likely persist over the next 12 to 24 months. This scenario implies that homeowners can expect to hold onto their properties without needing to lower prices to attract interest.
The median days on market (DOM) being listed as N/A points to a highly active market where homes are selling quickly. A low DOM typically correlates with strong buyer demand, which supports the assertion of sustained pricing power. Landlords and small-portfolio investors should note that the current conditions favor maintaining or even slightly increasing asking prices, provided the properties are priced competitively relative to their value and condition.
On the rental side, the Federal Market Rent (FMR) for fiscal year 2026 is projected at $2,210, while the current market rent is approximately $1,703. This gap suggests potential for rental price increases, aligning with the overall trend of rising property values. However, the disparity between FMR and actual market rents also indicates a period of adjustment where rents may gradually rise to meet the federal standards. This upward trajectory in rental rates supports the investment case for those looking to hold properties long-term, as it implies a steady growth in rental income.
For long-hold investors, the realistic appreciation thesis is anchored in the expectation that both home values and rental rates will continue to rise, albeit at a measured pace. The consistent median home value and the minimal percentage of listings reducing price point to a stable appreciation rate rather than explosive growth. Investors should anticipate a gradual increase in property values, driven by the interplay between supply and demand, economic stability, and broader market trends.
In summary, the current setup in ZIP 59741 signals a market where sellers have pricing power, and landlords can look forward to modest but steady rental growth. The combination of these factors makes it a favorable environment for both owning and renting out properties, particularly for those with a long-term investment horizon.
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.