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 | $1,710 |
| 1 Bedroom | $2,090 |
| 2 Bedrooms | $2,460 |
| 3 Bedrooms | $3,410 |
| 4 Bedrooms | $4,110 |
| 5 Bedrooms | $4,768 |
| 6 Bedrooms | $5,340 |
| 7 Bedrooms | $5,767 |
| 8 Bedrooms | $6,055 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,410 | $653,484 | 0.52% | F |
| 4BR | $4,110 | $745,845 | 0.55% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 59834 is centered around the discrepancy between the Fair Market Rent (FMR) set at $1260 for fiscal year 2024 and the actual market rent, which stands at $1,523 according to the latest Census ACS data. This creates a significant gap of $263, or approximately 17%, between what voucher holders can pay and the open-market rental rate.
Given that the FMR is less than the market rent, landlords and small-portfolio investors must understand the implications of housing voucher tenants at rates below the open market. The reduced rent of $1260 compared to the market rate of $1,523 means a direct loss of $263 per unit each month. Over the course of a year, this equates to a loss of $3,156 per unit. This is a substantial financial consideration for any property owner.
To contextualize this further, consider the following data points specific to ZIP 59834: only 7.3% of residents are renters, indicating a relatively low demand for rentals. Additionally, the median home value is $666,827, suggesting a robust homeownership market. With a median income of $94,406, many residents can afford to buy rather than rent, potentially leading to fewer rental options being sought out.
Despite these factors, the decision to accept Section 8 tenants should be made with a thorough understanding of the financial impact. While the guaranteed payment from the government ensures steady cash flow, the lower rent rate can affect overall portfolio yields. Investors must weigh the benefits of consistent income against the opportunity cost of renting units below their market value.
In summary, the gap between FMR and market rent in ZIP 59834 presents a clear challenge for landlords and small-portfolio investors. Accepting Section 8 tenants means operating at a lower rent rate, which directly impacts monthly and annual revenue. This analysis is crucial for making informed decisions about tenant selection and rental pricing strategies.
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.