Location: Traill County, ND | Metro: Steele County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 58274, located in Traill County, North Dakota, reveals key insights into its viability for Section 8 landlords and small-portfolio investors.
The rent math does not favorably align. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $870, whereas the current market rent stands at $623 according to the Census ACS. This indicates that landlords might struggle to cover operational costs and achieve profitability at the FMR rate if market conditions remain consistent.
Acquisition is moderately affordable. With a median home value of $252,804, potential investors can enter the market without excessive capital outlay. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts suggests a less transparent real estate market, which could pose challenges for timely sales and accurate pricing strategies.
Tenant demand is relatively low. The total population of 930 residents includes only a 18.9% renter share, equating to approximately 175 renters. This limited pool of potential tenants could impact occupancy rates and the availability of qualified applicants for Section 8 properties.
In conclusion, ZIP code 58274 presents a mixed outlook for Section 8 investments. While the cost of acquiring property is within reach, the misalignment between FMR and market rent, coupled with a modest tenant demand, suggests caution. Investors should carefully consider these factors and explore additional strategies to enhance profitability and manage risks effectively.
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.