Location: Lake 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 | $1,300 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,710 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,630 |
| 5 Bedrooms | $3,051 |
| 6 Bedrooms | $3,417 |
| 7 Bedrooms | $3,690 |
| 8 Bedrooms | $3,875 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,710 | $732,051 | 0.23% | F |
| 3BR | $2,280 | $848,776 | 0.27% | F |
| 4BR | $2,630 | $1,034,458 | 0.25% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 59922 (Lakeside, MT) reveals a stark contrast between government-subsidized rental income and potential market rents. Using the annualized Fair Market Rent (FMR) for a 2-bedroom unit at $1,750 (FY 2026, metro), the implied gross yield for a property in this area would be approximately 2.08%. This calculation is derived from the median home value of $841,118, where $1,750 multiplied by 12 months equals an annual income of $21,000, divided by the median home value.
However, the market rent is listed as N/A, which complicates the direct comparison to the unsubsidized scenario. Given the high median home value and low renter density of 29.8%, it's reasonable to infer that market rents for properties similar to those eligible for Section 8 would be significantly higher, potentially closer to the median home value. If we consider a hypothetical market rent that reflects the local real estate value, the gross yield could be much higher, though without specific data, this remains speculative.
The N/A-day Days on Market (DOM) suggests that rental properties in Lakeside, MT, are either quickly rented or there is limited data available on rental durations. In such a case, the reliance on Section 8 as a stable income source becomes evident, especially considering the high median home values that might deter many potential renters.
In conclusion, the Section 8 gross yield of 2.08% is substantially lower than what one might expect from market rents in this area. The high median home value and low renter density indicate that market rents could provide a more attractive gross yield, but the lack of specific market rent data makes this comparison incomplete. For investors, the stability of Section 8 payments must be weighed against the potential for higher yields through market rentals, taking into account the challenges of finding suitable tenants in a high-value, low-density rental market.
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.