Location: Barnes County, ND | Metro: Barnes 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 | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $174,045 | 0.66% | D |
| 3BR | $1,370 | $257,555 | 0.53% | F |
U.S. Census Bureau data (2024)
In Valley City, North Dakota (ZIP 58072), the real estate market presents a unique set of conditions that landlords and small-portfolio investors should consider. The median home value stands at $196,465, indicating a stable housing market where property values have not experienced significant fluctuations. This stability is further underscored by the fact that only 0.2% of listings have seen price reductions, suggesting that sellers maintain strong pricing power. Although the median days on market (DOM) is listed as N/A, the low percentage of price reductions implies that homes are selling relatively quickly, which supports the notion of robust demand.
The rental market in Valley City also shows interesting dynamics. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is projected to be $950, while the current market rent, as measured by ZORI (Zillow Observed Rent Index), is $791. This gap suggests potential upward pressure on rents as the market approaches the projected FMR. Landlords can expect to see modest increases in rental income over the next 12-24 months, aligning with the broader trend towards higher rental costs.
For long-term investors, the appreciation thesis in Valley City is less compelling. With the median home value remaining steady and the limited data on DOM, it is evident that the area does not offer rapid growth opportunities. Instead, the market signals a consistent environment where properties will likely hold their value rather than appreciate significantly. Investors should focus on the rental income potential rather than capital gains when evaluating the long-term viability of properties in this region.
The setup implied by the data points towards a market where landlords can leverage the current low DOM and high demand to maintain competitive rents. However, the appreciation of property values is expected to be modest, reflecting the overall stability of the local real estate market. This analysis provides a clear picture for those looking to invest in Valley City, emphasizing the importance of rental income over speculative appreciation.
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.