Location: Ravalli County, MT | Metro: Ravalli 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 | $1,030 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,100 | $493,756 | 0.22% | F |
| 2BR | $1,350 | $585,985 | 0.23% | F |
| 3BR | $1,870 | $692,208 | 0.27% | F |
| 4BR | $2,260 | $857,410 | 0.26% | F |
U.S. Census Bureau data (2024)
The ZIP code 59875 in Montana presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant risk factor, as the market rent stands at $963 compared to the Federal Market Rent (FMR) of $1,360 for the fiscal year 2026 in the metro area. This discrepancy suggests that tenants might prefer higher-quality housing options outside the Section 8 program, leading to higher turnover rates and potential vacancy issues.
Vacancy exposure is another concern. The Days on Market (DOM) figure is currently unavailable, which makes it difficult to predict how long properties might remain vacant between tenants. This uncertainty can lead to extended periods without rental income, affecting cash flow and profitability.
Deferred maintenance is also a notable risk. With a typical home value of $652,745 and a median income of $63,036, there's a possibility that homeowners might delay necessary repairs due to financial constraints. For landlords, this could translate into higher maintenance costs, especially when preparing homes for new tenants or complying with inspection requirements.
Despite these risks, the high renter share of 14.5% indicates a strong demand for rental properties, including those supported by Section 8 vouchers. High renter density often correlates with robust voucher demand, which can provide a steady stream of tenants and reduce the likelihood of prolonged vacancies. The presence of a substantial number of renters suggests that the local market is well-suited for subsidized housing programs.
In conclusion, the risks associated with Section 8 investments in ZIP 59875 are moderate, primarily due to the potential for higher tenant turnover and uncertain vacancy durations. However, the strong renter base provides a counterbalance, ensuring a stable tenant pool and reducing the overall risk for first-time Section 8 landlords.
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.