Location: Lincoln County, MT | Metro: Lincoln 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 | $1,040 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,080 | $332,112 | 0.33% | F |
| 2BR | $1,180 | $400,960 | 0.29% | F |
| 3BR | $1,630 | $505,087 | 0.32% | F |
| 4BR | $1,940 | $561,188 | 0.35% | F |
U.S. Census Bureau data (2024)
Troy, MT, ZIP code 59935, is a modest-sized community with a population of 3,381 residents. The neighborhood reflects a blend of homeownership and rental living, with only 18.6% of the population being renters. This indicates a predominantly owner-occupied area, suggesting a stable and potentially quieter environment for those seeking a residential investment opportunity.
The median household income in Troy, MT is $39,712, which is relatively low compared to the national average. However, the median home value stands at $416,040, showcasing a significant disparity between income levels and housing costs. This can be indicative of a market where affordable housing options are limited, creating a potential demand for subsidized rental units.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $1,190. In contrast, the current market rent, based on Census ACS data, is $879. This difference suggests an opportunity for investors who can leverage the higher FMR rate through participation in the Section 8 Housing Choice Voucher program. The gap between the FMR and market rent implies a potential for rental income that exceeds the local average, making it attractive for those looking to enter or expand in the subsidized housing market.
Given these economic conditions, ZIP 59935 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability provided by the Section 8 program ensures a steady stream of income, backed by the government's commitment to cover the difference between the market rent and what the tenant can afford. On the other hand, for hands-on investors, there is potential to improve properties and command rents closer to the FMR, thereby increasing the cash flow and value of their investments.
In conclusion, while Troy, MT is primarily a homeowner-driven community, the presence of a Section 8-friendly environment offers distinct advantages for real estate investors. The combination of a low percentage of renters and a substantial difference between FMR and market rent presents a unique opportunity to capitalize on the demand for affordable housing without the risk of high vacancy rates.
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.