Location: Powell County, MT | Metro: Granite 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 | $780 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $335,187 | 0.3% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 59832, which includes Drummond, MT, and parts of Granite and Powell Counties, reveals a favorable environment for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the metro area, set at $990 for fiscal year 2026, significantly exceeds the current market rent of $690, as reported by the Census ACS.
This substantial gap between the HUD FMR and the actual market rent indicates that voucher tenants will cashflow comfortably at the FMR rate. Landlords can expect positive cash flow without the need to offer premium units, thus maximizing their investment returns. For instance, with an average market rent of $690, the difference of $300 per month can be seen as a buffer that ensures financial stability and profitability.
To further understand the investment potential, consider the median home value of $338,918. This figure allows us to derive a rent-to-price ratio, which stands at approximately 0.2%. This low ratio suggests that the rental market is relatively undervalued compared to the housing market, indicating strong potential for both rental income and property appreciation.
In terms of rent-versus-buy dynamics, the median Days on Market (DOM) and the percentage of homes that experienced price cuts are not applicable (N/A) in this context. However, the low market rent and high FMR indicate that the rental market is currently more attractive than the buying market, making it a strong angle for investors.
The strongest investor angle in ZIP 59832 is cashflow. With the HUD FMR well above the market rent, landlords can secure steady, positive cash flow from voucher tenants, ensuring a reliable return on investment.
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.