Section 8 Fair Market Rent (FMR) for ZIP 59823 - 2027

Investment Score for ZIP 59823

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A decision tree for evaluating whether to invest in ZIP 59823 (Bonner, MT) for Section 8 properties begins with the Fair Market Rent (FMR) and the cost of debt service.

Step 1: Does the FMR of $1200 cover the debt service on a $601,250 property?

• Yes: The FMR of $1200 can clear the debt service on a $601,250 property if the monthly mortgage payment is less than or equal to $1200. Assuming an average interest rate and typical loan terms, this would be feasible. However, exact calculations depend on the interest rate and loan structure.
• No: If the monthly debt service exceeds $1200, then the FMR does not sufficiently cover the costs, making investment unadvisable.
• It Depends: This scenario arises if the monthly debt service is close to $1200. In such cases, additional factors must be considered, including property taxes, insurance, and maintenance costs.

Step 2: How does the market rent of $877 compare to the FMR?

• Market Rent Below FMR: At $877, the market rent is below the FMR of $1200, which means that Section 8 tenants could potentially pay higher rents than what the market currently demands. This suggests a favorable position for landlords who might face difficulty renting out their properties at market rates.
• Market Rent Equal to or Above FMR: If the market rent were to increase and match or exceed the FMR, the advantage of higher guaranteed rents diminishes. Landlords would need to evaluate the likelihood of market rent changes based on local economic trends and housing demand.

Step 3: Is there sufficient demand with 13.6% of the population being renters and the days on market (DOM) status?

• Yes: With 13.6% of the population being renters, there is a consistent demand for rental properties. The N/A status for DOM indicates either insufficient data or a stable market where properties do not typically stay on the market for long periods before being rented, suggesting strong tenant interest.
• No: If the percentage of renters were significantly lower, or if DOM was high, indicating slow rental turnover, then demand would be insufficient to justify investment.
• It Depends: Given the limited data on DOM, the analysis hinges on the assumption that the market is stable and that rental properties are generally occupied quickly. Landlords should investigate further into local rental trends and competition.

In conclusion, the decision to buy in ZIP 59823 for Section 8 properties is positive if the FMR covers debt service and market rent remains below FMR. The presence of 13.6% renters supports demand, but the lack of DOM data requires additional investigation to ensure quick occupancy and stable returns.

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.