Location: Sargent County, ND | 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 | $770 |
| 1 Bedroom | $790 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $92,063 | 1.1% | B |
| 3BR | $1,410 | $143,490 | 0.98% | C |
U.S. Census Bureau data (2024)
The classification of ZIP 58053, located in Lidgerwood, ND, can be analyzed based on yield and stability factors. On the yield axis, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $870, while the market rent stands at $734. This indicates that there is a potential for higher rental income when participating in the Section 8 program compared to the local market rates. However, the median home value in the area is significantly lower at $125,789, suggesting limited opportunities for capital appreciation.
Turning to stability, the ZIP code has a relatively low percentage of renters at 17.1%, which could indicate a less stable tenant pool. The average daily days on market (DOM) data is not available, but the median household income is reported at $51,339, which is below the national average and suggests that tenants may have limited financial flexibility.
Based on these figures, ZIP 58053 leans towards being a high-yield/low-stability market. The disparity between the FMR ($870) and the market rent ($734) points to a scenario where landlords can potentially earn more per unit through Section 8 subsidies. However, the low percentage of renters and modest median income imply that the market lacks the robustness needed to ensure a consistent cash flow over time. Therefore, it is not advisable for small-portfolio investors seeking steady and reliable returns to focus solely on this area without considering the risks associated with tenant turnover and income levels.
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.