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 | $1,220 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,420 |
| 4 Bedrooms | $2,930 |
| 5 Bedrooms | $3,399 |
| 6 Bedrooms | $3,807 |
| 7 Bedrooms | $4,112 |
| 8 Bedrooms | $4,318 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,750 | $541,587 | 0.32% | F |
| 3BR | $2,420 | $640,127 | 0.38% | F |
| 4BR | $2,930 | $815,837 | 0.36% | F |
| 5BR | $3,399 | $995,000 | 0.34% | F |
U.S. Census Bureau data (2024)
ZIP code 59804, located in Missoula, MT, falls within the Missoula, MT HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 59804 in fiscal year 2024 is set at $1,470, which is slightly below the market rent of $1,550. This indicates that while the subsidized rent is lower, it closely aligns with the actual rental market.
The median home value in ZIP 59804 is $663,781, which is above the average for the Missoula, MT HUD Metro FMR Area. However, the renter share in this ZIP code stands at 34.2%, which is notably higher than the typical share in the broader Missoula area. A higher renter share with relatively high home values can suggest that there is a significant demand for rental properties among low-income households, making it a potentially attractive area for Section 8 landlords and small-portfolio investors.
To determine if ZIP 59804 is a value pocket, a mid-tier neighborhood, or a premium sub-market within the Missoula, MT HUD Metro FMR Area, we must consider the interplay between FMR, market rent, home values, and renter share. Given the high renter share and the close alignment of FMR with market rents, but with above-average home values, ZIP 59804 appears to be a mid-tier neighborhood. It offers a balance between rental subsidies that are competitive with market rates and property values that are higher than the average.
A divergence worth noting is the high renter share combined with above-average home values. This could signal a sweet spot for Section 8 investment, where there is a strong demand for affordable housing, and landlords can benefit from the higher-than-average property values while still receiving rents that are close to market rates.
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.