Location: Roberts County, SD | Metro: Richland County, ND
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 | $930 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $137,133 | 0.89% | C |
| 3BR | $1,690 | $192,832 | 0.88% | C |
| 4BR | $2,040 | $226,746 | 0.9% | C |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 58041, Hankinson, ND, reveals a significant discrepancy between the Federal Market Rent (FMR) and the actual market rents. The annualized FMR for a two-bedroom apartment is $12,480, while the Census ACS reports the market rent at $5,496 annually.
To calculate the implied gross yield, we use the median home value of $170,917 as our basis. For the FMR scenario, the gross yield is approximately 7.3% ($12,480 / $170,917). In contrast, using the market rent figure, the gross yield drops to about 3.2% ($5,496 / $170,917).
The lower gross yield based on market rent reflects the reality of rental demand in Hankinson, where only 11.1% of residents are renters. This low renter density suggests that landlords relying solely on Section 8 tenants would face challenges in maintaining full occupancy throughout the year. Additionally, the lack of data on days on market (DOM) indicates potential issues with property turnover, further impacting the feasibility of achieving the higher FMR-based gross yield.
In conclusion, while the FMR scenario presents an attractive gross yield of 7.3%, the market realities of Hankinson point towards the 3.2% gross yield as more reflective of what landlords can expect. Investors should factor in these yields when evaluating the potential returns of properties in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.