Location: Richland 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 | $780 |
| 2 Bedrooms | $1,020 |
| 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 | $1,020 | $166,112 | 0.61% | D |
| 3BR | $1,410 | $230,804 | 0.61% | D |
| 4BR | $1,700 | $285,606 | 0.6% | F |
| 5BR | $1,972 | $368,969 | 0.53% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 properties in ZIP code 58075 in Wahpeton, ND, include significant tenant turnover. The market rent of $780 is notably lower than the Fair Market Rent (FMR) of $880 for fiscal year 2026, which suggests that tenants might seek higher-rent accommodations, leading to frequent changes in occupancy. This can be costly due to the time and resources required for screening new tenants and preparing units for new occupants.
Vacancy exposure is another concern. With a Days on Market (DOM) figure that is not available, it's challenging to predict how long a unit might remain vacant between tenants. Vacancies can lead to lost rental income, and without specific data on DOM, there is an increased risk of prolonged vacancies.
Deferred maintenance is also a significant risk factor. Given the typical home value of $226,756 and a median household income of $68,537, landlords must be prepared for the financial burden of maintaining and repairing properties. Tenants with limited income may not be able to contribute significantly to these costs, placing the entire responsibility on the landlord.
However, these risks are somewhat mitigated by the high renter share of 47.3%. A large proportion of renters typically indicates strong demand for affordable housing, including Section 8 vouchers. This high demand can help ensure a steady stream of qualified applicants, reducing the likelihood of extended vacancies.
In conclusion, the risks associated with Section 8 investments in ZIP 58075 in Wahpeton, ND, are moderate. While tenant turnover and deferred maintenance pose challenges, the high renter share provides a buffer against vacancy exposure.
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.