Location: Pembina County, ND | Metro: Pembina County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
The ZIP code 58216, located in Bathgate, North Dakota, presents several challenges for potential landlords and small-portfolio investors. One primary concern is whether the Fair Market Rent (FMR) of $910 will sufficiently cover the mortgage on a typical home in the area. The median home value in 58216 is $216,700, which is slightly below the national average but significantly higher than surrounding ZIP codes. While the FMR might not fully cover a mortgage payment, it is important to consider the lower cost of living and property taxes in this region, which can offset some of the financial burden.
A second objection is the relatively low renter demand at 19.2%. This percentage suggests that the majority of residents prefer homeownership over renting. However, the lack of rental properties in the area means that those who do seek rentals may face limited options, potentially driving up competition and demand. Additionally, the absence of rental listings indicates a scarcity of rental properties, which could mean opportunities for landlords who can provide quality housing.
Lastly, investors question if voucher usage will keep pace with market rents. Unfortunately, specific data regarding voucher usage in ZIP 58216 is not readily available. However, it's worth noting that the FMR of $910 is set by HUD to reflect the average rent for a modest home in the area, suggesting that vouchers should be sufficient for most rental units. Landlords should also consider that voucher holders often have stable incomes and are reliable tenants.
In summary, while the FMR of $910 may not entirely cover mortgage costs, other factors such as the cost of living and property taxes can help mitigate financial risks. The low renter demand at 19.2% is a valid concern, but the scarcity of rental properties might still attract tenants willing to pay market rates. Lastly, though specific voucher data isn't available, the FMR is designed to align with typical rental costs, indicating that voucher holders should be able to afford the average rental unit in 58216.
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.