Location: Idaho County, ID | 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 | $1,150 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,300 |
| 4 Bedrooms | $2,770 |
| 5 Bedrooms | $3,213 |
| 6 Bedrooms | $3,599 |
| 7 Bedrooms | $3,887 |
| 8 Bedrooms | $4,081 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,660 | $482,268 | 0.34% | F |
| 3BR | $2,300 | $523,738 | 0.44% | F |
| 4BR | $2,770 | $608,734 | 0.46% | F |
| 5BR | $3,213 | $768,025 | 0.42% | F |
U.S. Census Bureau data (2024)
ZIP code 59847 encompasses a residential area in Lolo, Montana, characterized by a relatively small population of 6,015 residents. The neighborhood maintains a predominantly owner-occupied environment, with only 24.3% of the households being renters. This indicates a community where homeownership is valued, likely due to the attractive median home value of $543,460. However, the median income in the area stands at $86,620, suggesting that while homes are expensive, residents generally have the financial stability to support such investments.
The rent economics in ZIP 59847 present an interesting opportunity. According to the latest Fair Market Rent (FMR) for the zip code for fiscal year 2024, the FMR is set at $1,190. This figure is slightly higher than the reported market rent of $1,145, based on Census American Community Survey (ACS) data. This discrepancy suggests that there could be room for modest increases in rental rates without significantly deterring potential tenants who qualify for Section 8 assistance.
Given these economic conditions, ZIP 59847 is suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the slightly higher FMR compared to market rent means that they can rely on the government subsidy to cover the cost of maintaining properties at a level that aligns with the local standards. For value-add buyers, the opportunity lies in improving properties to command rents closer to the FMR, thereby maximizing the profit margin while still providing affordable housing options.
In summary, the neighborhood in ZIP 59847 offers a stable environment with a strong median income base, supporting the high median home values. The rent dynamics favor both passive and active investment strategies, making it a viable option for Section 8 investors looking to either maintain a low-involvement portfolio or actively manage properties for increased returns.
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.