In May 2023, Montana’s Behavioral Health System for Future Generations Committee proposed and requested funding for a Fair Market Rent Reevaluation Study in Montana. This study would redefine Fair Market Rent, or the amount of monthly rent money Housing Choice Vouchers (HCVs) can provide for each household utilizing HCVs. Montana households who depend on Montana’s Behavioral Health System are more likely to be cost-burdened or severely cost-burdened, meaning they pay more than 30 to 50 percent of their monthly income on housing costs. Behavioral health systems refer to systems that support mental health, substance use disorders, life stressors or crises, and stress-related physical symptoms.
Housing Choice Vouchers fund very low-income families to lease safe, decent, and affordable privately owned rental housing. The Montana Department of Commerce’s statewide Public Housing Authority currently has 3,754 active and pending households on the HCV program. The statewide HCV program is currently serving 1,899 households with at least one household member with a disability, plus an additional 963 households on the waitlist.
Voucher standards in Montana are currently too low for Montanans in many communities to utilize. One and two-bedroom apartments are, on average, between $261 and $271 each month, less than other federal housing subsidy standard. This discrepancy is even more notable in rural communities where the current “success rate” – meaning the ability of Housing Choice Voucher (HCV) participants to lease a unit within 120 days of voucher issuance successfully – is only 48 percent in Montana The average wait time for voucher issuance in Montana can range from 6 months to 10 years.
HUD’s standards of Fair Market Rent are not accurate in terms of the actual cost of living in Montana. On July 31, 2024, the Behavioral Health System for Future Generations Committee agreed to fund a statewide Fair Market Rent study to ensure that we can adequately understand the actual amount of housing assistance low-income Montanans need to afford housing. This study will use $1 million of the $300 million secured by the governor last year to improve Montana’s behavioral health and developmental disabilities service systems. This is one-time funding for the Montana Department of Commerce to work in partnership with the Montana National Association of Housing and Redevelopment Officials HUD Fair Market Rent Solutions Workgroup. The official start date of the study has not yet been announced, but this is a monumental step towards increased voucher success in the state of Montana.
MBPC is a nonprofit organization focused on providing credible and timely research and analysis on budget, tax, and economic issues that impact low- and moderate-income Montana families.