Location: Flathead County, MT | Metro: Flathead 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 | $1,160 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,180 | $482,404 | 0.24% | F |
| 2BR | $1,540 | $612,280 | 0.25% | F |
| 3BR | $2,060 | $736,860 | 0.28% | F |
| 4BR | $2,560 | $878,468 | 0.29% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 59920, which encompasses Proctor, Montana, presents a compelling opportunity for landlords and small-portfolio investors due to the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,510, while the current market rent, as per Census ACS data, stands at $973. This discrepancy amounts to a $537 difference, or approximately 55.2% of the market rent.
This substantial gap means that landlords who accept Section 8 vouchers can potentially earn higher yields on their rental properties. Voucher tenants pay a portion of their income towards rent, with the government covering the remainder up to the FMR. Given the median income in Proctor, MT is $86,605, tenants would contribute around 30% of their income towards rent, which is capped at $973, well below the FMR. Therefore, landlords can charge closer to the FMR without overburdening the tenant, leading to increased cash flow.
In Proctor, where only 4.4% of residents are renters and the median home value is $678,860, the rental market is relatively small. However, the opportunity to attract voucher tenants can help fill vacancies and ensure steady income. The median income figure also indicates that the majority of residents might be homeowners, making the rental market even more niche and potentially less competitive.
Landlords should be aware that there are costs associated with accepting housing voucher tenants, such as administrative tasks and potential delays in rent payments. However, the financial benefit of receiving rent close to the FMR, rather than the lower market rate, often outweighs these drawbacks. This makes Proctor an attractive location for those looking to maximize returns through the Section 8 program.
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.