Location: Missoula, MT | Metro: Missoula, MT HUD Metro FMR Area
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 | $1,110 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,360 | $367,539 | 0.37% | F |
| 2BR | $1,600 | $448,912 | 0.36% | F |
| 3BR | $2,220 | $514,062 | 0.43% | F |
| 4BR | $2,670 | $619,100 | 0.43% | F |
| 5BR | $3,097 | $712,481 | 0.43% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 59801, located in Missoula, MT, within Missoula County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is $1160. This figure represents the maximum amount that the Housing Choice Voucher program will pay for a two-bedroom unit in this area.
Local market rents, as measured by ZORI (Zillow Observed Rent Index), stand at $1443 for a similar two-bedroom unit. This indicates that landlords may face a slight shortfall if they participate in the Section 8 program without adjusting their expectations accordingly.
A voucher holder is responsible for paying 30% of their adjusted income toward rent. For simplicity, let's assume an adjusted income that aligns with the SAFMR. The tenant portion would then be approximately $348, calculated as 30% of $1160. In addition to this base rent, there are utility allowances which vary but typically do not cover the entire cost of utilities. These allowances can range from $300 to $500 per month depending on the number of bedrooms and other factors, but we'll use a conservative estimate of $300 for this scenario.
In total, a landlord participating in Section 8 in ZIP 59801 would receive around $1468 per month for a two-bedroom unit. This sum includes the $1160 from the voucher program plus the $300 utility allowance. However, it's important to note that the utility allowance is paid directly to the tenant, not the landlord.
The actual reimbursement to the landlord is thus the SAFMR amount of $1160. Given that the local market rent is $1443, the typical reimbursement gap for a landlord in ZIP 59801 is $283 per month. This means landlords must either accept a lower rental rate than the market average or seek additional ways to make up for this shortfall, such as reducing maintenance costs or finding efficiencies in property management.
While the gap exists, many landlords find the stability and security of having a government-backed payment system appealing. It ensures consistent income and reduces the risk of non-payment by tenants. However, it's crucial for landlords to understand these economic realities before committing to the Section 8 program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.