Section 8 Fair Market Rent (FMR) for ZIP 59864 - 2027

Location: Lake County, MT | Metro: Lake County, MT

Investment Score for ZIP 59864

Monthly Rent (2BR)

$1,400

Median Price (2BR)

$384,539

1% Rule

0.36%

Annual Yield

4.37%

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

Unit Size	Monthly FMR
Studio	$1,080
1 Bedroom	$1,090
2 Bedrooms	$1,400
3 Bedrooms	$1,760
4 Bedrooms	$1,980
5 Bedrooms	$2,297
6 Bedrooms	$2,573
7 Bedrooms	$2,779
8 Bedrooms	$2,918

Investment Analysis by Bedroom Size

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

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,400	$384,539	0.36%	F
3BR	$1,760	$457,142	0.39%	F
4BR	$1,980	$587,727	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

7,301

Median Household Income

$61,978

Housing Units

2,872

Renter Percentage

29.6%

Occupancy Rate

89.9%

Renter Occupied

764

The ZIP code 59864, located in Ronan, Montana, can be classified as a moderate yield and moderate stability market based on the provided data.

On the yield axis, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,400. This figure is significantly higher than the market rent of $913, indicating a potential opportunity for landlords to capitalize on the difference if they can secure Section 8 tenants. However, the home value of $438,242 suggests that the initial investment required to enter this market is relatively high compared to the average market rent.

Moving to the stability axis, the ZIP code has a 29.6% rental rate, which means nearly a third of the residents are renters. The median household income of $61,978 provides some assurance regarding the financial health of potential tenants. However, the lack of data on the number of days properties remain on the market (DOM) makes it difficult to assess how quickly units can be filled, which is a key indicator of stability.

To further clarify the classification, let's break down the factors:

Yield: With an FMR of $1,400 and a market rent of $913, the gap between these figures presents a moderate yield opportunity. Landlords should expect to see a profit margin above the market rent when dealing with Section 8 tenants.
Stability: The 29.6% rental rate and median income of $61,978 suggest a stable tenant base. However, without DOM data, there is uncertainty about the speed at which units can be occupied, which could affect cash flow consistency.

Given these specifics, ZIP 59864 does not fit neatly into a high-yield/low-stability "flip-style" market or a steady-cashflow zone. Instead, it represents a middle ground where there is potential for decent returns but also requires careful management due to the lack of immediate occupancy data.

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.