Location: Pembina County, ND | Metro: Pembina County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
U.S. Census Bureau data (2024)
The median home value in ZIP Code 58265 (Neche, ND) is $104,500. Using the annualized Fair Market Rent (FMR) for a two-bedroom apartment at $910 (FY 2026, metro), we can calculate the potential gross yield for properties in this area. Assuming an investor purchases a median-priced home and rents out a two-bedroom unit, the annual rent would be $10,920. This translates to a gross yield of approximately 10.45%, calculated by dividing the annual rent by the median home value.
However, since the market rent for the area is listed as N/A, let's consider a scenario where market rents are higher than the FMR. If we assume market rents are 20% above the FMR, the annual rent for a two-bedroom unit would increase to $13,104, resulting in a gross yield of around 12.54%. This higher gross yield assumes that the market rent reflects a more accurate representation of rental income potential.
Given the 7.9% renter density in Neche, it's important to note that the actual occupancy and rental income may vary. The lack of specific data on days on market (DOM) also means we cannot precisely gauge how quickly properties are rented out. However, the FMR-based gross yield of 10.45% is more conservative and likely closer to reality, considering the limited availability of market rent data and the relatively low renter density.
For small-portfolio investors, focusing on the FMR-based gross yield is advisable due to the scarcity of detailed market rent figures. This approach ensures a safer investment strategy, aligning with government-set rental standards rather than speculative market assumptions.
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.