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 | $1,120 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,690 |
| 5 Bedrooms | $3,120 |
| 6 Bedrooms | $3,494 |
| 7 Bedrooms | $3,774 |
| 8 Bedrooms | $3,963 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,370 | $333,535 | 0.41% | F |
| 2BR | $1,610 | $427,553 | 0.38% | F |
| 3BR | $2,230 | $611,089 | 0.36% | F |
| 4BR | $2,690 | $748,970 | 0.36% | F |
| 5BR | $3,120 | $911,234 | 0.34% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 59802, located in Missoula, MT, presents an interesting scenario for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, set at $1,150 for fiscal year 2024, is significantly lower than the market rent, which stands at $1,341 according to ZORI. This creates a gap of $191 per month, representing approximately a 14.2% discount off the market rate.
Given that only 48.4% of residents in Missoula are renters, the competition for rental properties can be intense. Additionally, the median home value of $551,922 and median income of $67,736 suggest that the local economy supports higher rental prices. However, landlords who choose to participate in the Section 8 program will receive a rent amount that is below the market rate, specifically $191 less per month.
This discrepancy means that landlords must carefully consider the costs associated with housing voucher tenants. While the program ensures timely payments and a stable source of income, the lower rent received can affect overall investment yields. In Missoula, where rental demand is not overwhelming and market rents are relatively high, accepting a Section 8 tenant could mean foregoing a higher-paying open-market renter.
To put this into perspective, if a landlord has a property that would otherwise rent for $1,341 per month, participating in the Section 8 program would result in a monthly loss of $191, assuming no other financial incentives or subsidies are applied. This cost must be weighed against the benefits of having a reliable tenant and the potential for reduced vacancy rates.
In summary, the decision to accept Section 8 tenants in ZIP 59802 involves understanding the economic context of Missoula and the specific implications of the $191 discount. Landlords should assess whether the reduced rent aligns with their investment goals and whether the stability provided by the program outweighs the financial impact of renting below market rates.
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.