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 | $990 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $456,731 | 0.28% | F |
| 3BR | $1,680 | $578,979 | 0.29% | F |
| 4BR | $1,800 | $712,661 | 0.25% | F |
U.S. Census Bureau data (2024)
ZIP code 59865, located in Saint Ignatius, MT, within the Lake County, MT metro area, serves as a strong cash-flow anchor for any Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,260, which is significantly higher than the local market rent of $723. This creates a substantial spread that benefits landlords participating in the Section 8 program.
The median home value in ZIP 59865 stands at $533,229. Despite this high median home value, the disparity between the FMR and the actual market rent ensures a steady and reliable source of income for properties enrolled in Section 8. Landlords can count on receiving the higher FMR rate, which covers their costs and provides a cushion against potential increases in property management expenses.
This ZIP code is not an ideal appreciation play due to its low price-cut share of 0.1%. Additionally, the days on market (DOM) is not applicable here, indicating that homes in this area do not typically sit unsold for extended periods. While appreciation plays can be lucrative, the primary focus in ZIP 59865 should be on generating consistent cash flow rather than capital gains.
Nor does ZIP 59865 serve primarily as a diversifier. Although the renter share is 26.7%, and the median income is $56,473, these factors do not outweigh the significant advantages of using this area as a cash-flow anchor. The high FMR compared to the local market rent ensures that landlords can maintain profitability even if other parts of their portfolio experience financial strain.
In conclusion, ZIP code 59865 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The $537 difference between the FMR ($1,260) and the market rent ($723) guarantees a stable and predictable income stream, making it a valuable addition to any investment portfolio focused on rental properties.
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.