Location: Lake County, MT | Metro: Lake 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 | $1,130 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,130 | $433,463 | 0.26% | F |
| 2BR | $1,460 | $507,813 | 0.29% | F |
| 3BR | $1,840 | $598,198 | 0.31% | F |
| 4BR | $2,060 | $754,756 | 0.27% | F |
| 5BR | $2,390 | $880,158 | 0.27% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP code 59860, located in Polson, Montana, presents a unique scenario for both landlords and small-portfolio investors. With a median home value of $562,301, the area has maintained a strong price point, indicative of a stable housing market. The fact that only 0.1% of listings have been reduced further supports this stability, suggesting that sellers are confident in their asking prices and buyers are willing to meet them. The absence of a median days on market (DOM) figure might imply a balanced market where neither side—buyers nor sellers—is significantly outpacing the other.
On the rental side, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is projected to be $1,450, while the current market rent stands at $926. This significant gap suggests that rental prices could rise to meet the FMR level, providing an opportunity for landlords to increase their income. However, it's important to note that the FMR is a benchmark set by the U.S. Department of Housing and Urban Development (HUD) for Section 8 purposes and may not fully reflect the local rental market dynamics.
For long-term investors, the setup implies a potential for steady appreciation rather than rapid growth. The stable median home value and the minimal reduction in listing prices indicate that the market is unlikely to experience a sudden surge in property values. Instead, the gradual alignment of rental prices with the FMR could contribute to a slow but steady increase in property values over the next 12 to 24 months. This would be beneficial for those looking to hold properties for extended periods, as it suggests a realistic path toward asset appreciation without the volatility often seen in more dynamic markets.
To summarize, the current data points to a market characterized by stability and modest upward pressure on both property and rental values. Landlords can expect to see gradual improvements in rental yields, while small-portfolio investors should anticipate steady, albeit moderate, capital appreciation.
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.