Overview of HUD Housing Programs Available in Montana

The U.S. Department of Housing and Urban Development (HUD) operates several programs designed to help people in Montana find housing that fits their needs and budget. These programs work through local public housing authorities, nonprofit organizations, and private landlords throughout the state. Montana has 56 counties, and HUD programs operate in most of them, though the specific programs available can vary by location.

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HUD's primary mission is to help people afford housing and prevent homelessness. The agency does not directly provide housing to individuals. Instead, it funds programs that are managed locally by housing authorities and community organizations. These organizations receive HUD money and use it to help residents through vouchers, direct housing options, or financial support.

Montana faces unique housing challenges. The state covers over 147,000 square miles but has a population of about 1.1 million people. Rural areas often have limited housing stock and fewer rental options. Median home prices in Montana have risen significantly—as of 2023, the median home price exceeded $450,000 in many areas. Rental costs have also increased, with the average rent for a two-bedroom apartment ranging from $900 to $1,300 per month depending on location. These increases make affordable housing a real concern for many Montanans.

Understanding what programs exist is the first step in exploring options. This guide describes several HUD programs operating in Montana and explains how each one works. Information provided here comes from HUD's official resources, Montana housing authority contacts, and publicly available program descriptions.

Practical Takeaway: Start by identifying which county or city you live in, as this determines which local housing authorities manage HUD programs in your area. Contact information for Montana's public housing authorities is available through HUD's website or by searching "[your city] public housing authority."

The Housing Choice Voucher Program in Montana

The Housing Choice Voucher Program, sometimes called Section 8, is HUD's largest rental support program. It operates in Montana through local public housing authorities in cities including Billings, Missoula, Great Falls, Bozeman, and Helena, as well as several rural areas. The program does not build housing or directly house people. Instead, it gives vouchers to individuals and families, allowing them to rent apartments or houses from private landlords while paying a portion of the rent themselves.

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Here's how the voucher system works: A household receives a voucher that represents a portion of their rent. The household pays approximately 30 percent of their monthly income toward rent. HUD pays the rest directly to the landlord, up to a limit set for that area. For example, in Billings, the payment standard for a two-bedroom apartment might be $1,100 per month. If a household earns $2,000 monthly, they would pay about $600 and HUD would pay up to $1,100 to the landlord.

The voucher works with any landlord who agrees to participate. Tenants can choose where they want to live as long as the unit meets HUD quality standards and the rent does not exceed the payment standard for that area. This gives people more freedom than traditional public housing, where residents live in buildings owned by housing authorities.

Montana's Housing Choice Voucher program served approximately 3,000 households as of recent reports. However, demand for vouchers typically exceeds availability. Many housing authorities in Montana maintain waiting lists that can be months or even years long. The Missoula County Public Housing Authority, for instance, has periods when its waiting list is closed due to the number of people waiting.

Voucher holders must meet certain requirements. They must be U.S. citizens or eligible immigrants, pass a background check, and have income below certain limits. Income limits vary by family size and location. For a family of four in Billings, the income limit is typically around $55,000 annually. The exact limit changes each year based on area median income.

Practical Takeaway: Contact your local housing authority to ask about voucher program waiting lists and current income limits for your household size. Request information about any voucher orientations or informational meetings. Get on the waiting list if you are interested, as the wait time can be substantial in many Montana communities.

Public Housing in Montana Communities

Public housing refers to apartments and houses that are owned and operated by local public housing authorities with HUD funding. These are real buildings where people live, as opposed to vouchers that help pay for private rental housing. Montana has public housing developments in its major cities and some smaller communities. Billings, Missoula, Great Falls, Helena, and Bozeman all operate public housing properties.

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Public housing in Montana ranges from small apartment complexes to scattered-site houses (single homes or duplexes spread throughout a community rather than grouped in one location). For example, the Billings Housing Authority operates multiple properties including Lincoln Homes, a large apartment complex, along with various townhomes and single-family houses. Residents of public housing pay rent based on 30 percent of their income, just as they would with a voucher, but the housing authority owns and maintains the property.

Public housing units in Montana typically cost between $400 and $1,200 monthly in rent, depending on the location and the resident's income. This is substantially less than private market rents in most areas. A household earning $24,000 annually would pay approximately $600 per month for public housing, for example.

Public housing properties must meet HUD maintenance and safety standards. Housing authorities conduct inspections regularly to ensure units are safe, have working utilities, and meet building codes. Residents are required to maintain the property and follow lease terms, which typically prohibit illegal activity and require residents to be respectful neighbors.

Montana has approximately 2,500 public housing units managed by various local authorities. This number has remained relatively stable for years, though funding challenges and maintenance costs continue to affect the public housing system. Some older buildings require significant repairs, and competition for limited federal funding means that replacing or renovating public housing happens slowly.

Public housing is particularly important in Montana's rural areas where private rental housing may be scarce. Counties with small populations sometimes have a few public housing units that serve as the only affordable rental option for very low-income residents. In some cases, people can live in public housing for many years or even decades.

Practical Takeaway: Visit or call your local housing authority to ask about public housing availability and current waiting lists. Ask what types of units are available (apartments, townhomes, houses) and what the income limits are. Request a tour of a property if possible to see what public housing in your area looks like.

Project-Based Rental Support Programs

Project-based rental assistance is different from the Housing Choice Voucher program because the assistance is tied to a specific building rather than to a person. In these programs, HUD provides funding directly to private apartment complexes or nonprofit housing developers. The building owner agrees to rent units at below-market rates to low-income tenants. When someone moves out of a project-based unit, the subsidy stays with the building, not the person.

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Montana has numerous project-based rental assistance properties operated by nonprofit housing organizations and private developers. These include apartment complexes specifically built for seniors, people with disabilities, and low-income families. For example, many communities have properties reserved for people age 62 and older where HUD provides rental assistance.

One advantage of project-based housing is that it can be targeted to specific populations. Properties may be designed for homeless individuals transitioning to permanent housing, veterans, people with mental health challenges, or families with children. The buildings often have supportive services available on-site or nearby, such as case management, job training, or counseling. This combination of affordable housing plus support services helps people stabilize their living situations.

However, project-based housing has a significant limitation: if you move out, you lose the subsidy. The voucher program allows people to take their assistance with them to a new location. Project-based housing ties assistance to one building. This can work well for people who want to stay in a particular community but can be restrictive for those who need to relocate.

Montana's project-based programs include senior housing, family apartments, and transitional housing for homeless persons. Many of these properties are located in Montana's larger cities where populations are concentrated, though some rural areas also have project-based units. The Montana Board of Housing, a state agency that works with HUD, maintains a database of housing properties receiving various forms of assistance, including project-based