Location: Barnes County, ND | Metro: Fargo, ND-MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,380 |
| 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 classification of ZIP code 58071 hinges on analyzing its yield and stability metrics. Yield is determined by comparing the Fair Market Rent (FMR) set at $910 for fiscal year 2024 against the local market rent of $788. The absence of home values suggests that rental properties dominate the area, which is further supported by the 16.2% of residents being renters. Stability is gauged by the median household income of $109,375 and the lack of data on days on market (DOM), which typically indicates the speed at which properties are rented out.
In terms of yield, ZIP 58071 offers a clear advantage for landlords and small-portfolio investors due to the higher FMR compared to the market rent. This implies that there is potential to increase rents closer to the FMR without pricing out tenants, thus enhancing profitability. The gap between the FMR and the market rent ($910 vs $788) represents an opportunity to generate higher returns, assuming demand can be sustained at the higher price point.
Regarding stability, the ZIP code shows a mixed picture. On one hand, the median household income of $109,375 suggests a relatively stable economic base, which could support consistent rental payments and reduce the risk of tenant defaults. However, the low percentage of renters (16.2%) might indicate that the area is not heavily reliant on rental housing, potentially leading to lower demand for rental properties. The lack of DOM data makes it challenging to assess how quickly properties can be leased, but it does not necessarily imply instability; it could simply mean that the rental market is less active overall.
Based on these figures, ZIP 58071 leans towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. While the potential for increased rental income exists, the stability offered by the higher median household income outweighs the risks associated with low renter percentages. Landlords should focus on maintaining a balance between maximizing rent and ensuring occupancy rates remain high to avoid prolonged vacancies.
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.