Location: Madison County, MT | Metro: Madison 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 | $1,050 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,890 | $560,516 | 0.34% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 59754 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $1,550 per month for FY 2026. However, it's important to note that the local market rent for a similar unit is reported to be $1,050, based on Census ACS data.
A Section 8 voucher does not cover the entire rent amount. Instead, it pays the difference between the tenant's contribution and the total rent. The tenant is required to pay 30% of their adjusted income towards rent. For example, if a tenant has an adjusted income of $2,000 per month, they would contribute $600 towards rent. This leaves a balance of $950 from the local market rent of $1,550. The Section 8 program would then pay the remaining $950 to meet the local market rent, not the SAFMR.
In addition to covering part of the rent, the voucher also includes utility allowances. These allowances vary but are generally around $300-$400 per month. This allowance is separate from the rent payment and directly benefits the tenant, reducing their out-of-pocket expenses.
Given the SAFMR of $1,550 and the local market rent of $1,050, landlords in ZIP 59754 will typically receive a reimbursement that covers the local market rent plus any applicable utility allowances. In this case, if the utility allowance is $350, the total reimbursement a landlord can expect is $1,400 ($1,050 for rent and $350 for utilities).
This means there is a potential reimbursement gap. Landlords might find themselves short by $150 per month compared to the SAFMR, since the voucher only ensures the rent does not exceed the local market rate. Conversely, landlords could see a surplus if the local market rent is higher than $1,050, which is not the case here.
To summarize, landlords should understand that the reimbursement for a two-bedroom apartment under Section 8 in ZIP 59754 will likely cover the local market rent of $1,050 plus utility allowances, leading to a reimbursement gap of $150 against the SAFMR of $1,550.
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.