Location: Fargo, ND | Metro: Fargo, ND-MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 58012 reveals a moderate investment climate that balances between yield and stability, making it neither a high-yield/low-stability flip-style market nor a purely steady-cashflow zone. The Federal Market Rent (FMR) for ZIP 58012 in fiscal year 2024 is set at $910, which is notably higher than the market rent of $814. This difference suggests an above-average rental income potential, with landlords earning approximately $96 per unit per month more than the average market rate.
However, the stability aspect of the market shows mixed signals. With 33.7% of residents being renters, there is a decent tenant pool available. Yet, the lack of data on days on market (DOM) indicates uncertainty regarding how quickly properties can be rented out, which is crucial for assessing turnover rates and vacancy risks. Additionally, the median household income of $75,000 provides a stable economic foundation for tenants' ability to pay rent consistently.
On the property value front, homes in ZIP 58012 are valued at an average of $308,129. This figure, combined with the FMR, suggests a reasonable capital appreciation potential alongside rental income. However, the relatively low market rent compared to the FMR implies that landlords might face challenges in fully utilizing the higher rent ceiling, possibly due to local market conditions or competition.
To summarize, ZIP 58012 offers a moderate yield opportunity with a slight edge over the market rent, but its stability is somewhat compromised by the incomplete data on rental turnover. It leans towards being a steady-cashflow zone, given the stable income levels and reasonable property values, but the full potential for high yields remains unexploited without further action to attract tenants willing to pay closer to the FMR.
Data Sources: FMR data from HUD (2027). 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.