Section 8 Fair Market Rent (FMR) for ZIP 58104 - 2027

Investment Score for ZIP 58104

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$920
1 Bedroom	$1,060
2 Bedrooms	$1,300
3 Bedrooms	$1,800
4 Bedrooms	$2,170
5 Bedrooms	$2,517
6 Bedrooms	$2,819
7 Bedrooms	$3,045
8 Bedrooms	$3,197

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,800	$332,247	0.54%	F
4BR	$2,170	$410,446	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 58104 (Bismarck, ND) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 58104 is set by HUD for 2026 and ranges from $900 for a zero-bedroom unit to $2180 for a four-bedroom unit. However, without recent Zillow data, it is challenging to directly compare these figures to actual market rents. The FMR for a two-bedroom unit at $1300 represents 18.2% of the median household income of $85,747, which suggests that the rent is relatively affordable compared to local incomes. Nevertheless, voucher holders face significant constraints, particularly in finding units that accept their vouchers and fall within the specified FMR limits. #### Affordability & Renter Profile ZIP code 58104 has a high renter population percentage of 54.6%, indicating a strong demand for rental properties. With a median household income of $85,747, the area appears to be economically stable, but the high occupancy rate of 97.3% suggests that the market is quite tight. This means that there is little room for new rentals to enter the market without potentially displacing existing residents or increasing competition among landlords. Given the high renter population and limited supply, it is likely that renters in this area are diverse, ranging from young professionals to families, all seeking affordable housing options. #### Investor Angle From an investor perspective, the ZIP code 58104 presents a mixed picture. The FMRs are set at levels that are generally lower than what might be expected in a tight rental market, which could make it challenging to achieve positive cash flow. For instance, the FMR for a two-bedroom unit is $1300, which is only 18.2% of the median household income. This indicates that the rental market is highly regulated, and investors would need to ensure they can manage costs effectively to maintain profitability. The investment grade for this ZIP code would be considered moderate due to the high renter population and occupancy rates, but the tight market conditions and regulatory constraints pose risks. Investors should carefully consider the potential for higher vacancy rates if the market becomes oversaturated or if there is a shift in tenant preferences away from Section 8 units. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given the high demand for rental properties and the higher FMRs for larger units, investors might find better returns by focusing on three- and four-bedroom units. The FMR for a three-bedroom unit is $1810, and for a four-bedroom unit, it is $2180. These higher FMRs can help offset some of the costs associated with maintaining and managing larger properties. 2. **Consider Mixed-Income Developments**: To mitigate the risk of relying solely on Section 8 vouchers, investors could explore developing mixed-income communities. By offering a mix of market-rate and subsidized units, landlords can diversify their revenue streams and reduce dependency on government subsidies. 3. **Evaluate Property Management Costs**: Due to the high occupancy rate and limited supply, property management costs must be closely monitored. Investors should seek out properties that have low maintenance needs or are located in areas where property taxes and insurance are relatively low to maximize cash flow. #### Bottom Line For Section 8-focused investors, ZIP code 58104 presents a moderately attractive opportunity. The high renter population and occupancy rates indicate a robust demand for rental housing, but the tight market and regulatory constraints mean that careful planning is essential. The recommendation would be to **Hold** investments in this ZIP code, given the current economic stability and the potential for higher returns on larger units. However, investors should proceed with caution and consider diversifying their portfolio to include both Section 8 and market-rate units.

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.