Location: Powell County, 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 | $1,180 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,820 |
| 5 Bedrooms | $3,271 |
| 6 Bedrooms | $3,664 |
| 7 Bedrooms | $3,957 |
| 8 Bedrooms | $4,155 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,430 | $381,817 | 0.37% | F |
| 2BR | $1,690 | $510,614 | 0.33% | F |
| 3BR | $2,340 | $659,903 | 0.35% | F |
| 4BR | $2,820 | $869,629 | 0.32% | F |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 59868, encompassing Seeley Lake, MT, and parts of Missoula County and Powell County, presents a unique set of challenges and opportunities for real-estate investors. The HUD Fair Market Rent (FMR) for this area in fiscal year 2024 is set at $1200. However, the lack of available market rent data makes it difficult to provide a direct comparison. Based on the provided FMR, voucher tenants will typically cashflow at the FMR rate, but only in premium units due to the high median home value of $571,551.
To understand the investment potential, consider the rent-to-price ratio. With an FMR of $1200 and a median home value of $571,551, the ratio indicates that rental income alone would not cover the mortgage payments on average-priced homes, let alone higher-end properties. This suggests that investors should focus on properties that offer above-average rental yields or are priced below the median home value to ensure positive cash flow.
The median days on market (DOM) and the percentage of homes that require price cuts are not provided, which could be critical in assessing the local housing market's liquidity and the competitive landscape for landlords. Without these metrics, it's challenging to gauge the exact rent-vs-buy dynamics, but the high median home value implies that the local economy might favor renting over buying for many residents.
The strongest investor angle in this market is likely appreciation. Given the relatively high median home value, there is potential for property values to increase further, especially if the local economy continues to grow. This appreciation can provide significant returns on investment over time, even if initial cash flows are marginal. Investors should consider long-term strategies that leverage the potential for property value growth alongside the benefits of stable rental income from voucher tenants.
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.