Location: Pembina County, ND | Metro: Pembina County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $910 |
| 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 the Section 8 cap rate for ZIP code 58276 reveals some interesting insights. The Fair Market Rent (FMR) for a two-bedroom apartment in this area, as set by HUD for fiscal year 2026, is $870 per month. However, the Census ACS indicates that the actual market rent for a similar unit is lower at $713 per month.
To determine the gross yield, we must first annualize these figures. The annualized FMR for a two-bedroom unit is $10,440 ($870 x 12 months), while the annualized market rent is $8,556 ($713 x 12 months).
The median home value for ZIP 58276 is not available, which makes it challenging to calculate a precise cap rate. Nonetheless, we can still compare the gross yields implied by the FMR and market rent. Using the FMR, an investor could expect a higher gross yield due to the larger monthly rental income. Conversely, relying on the market rent would result in a lower gross yield.
Given the 15.5% renter density in ZIP 58276, it's important to note that the majority of homeownership is occupied by owner-occupiers rather than renters. This suggests that landlords should be cautious about overestimating demand for rental properties, particularly those participating in the Section 8 program. The N/A-day Days on Market (DOM) indicates incomplete data, which could mean either very quick sales or a lack of recent transactions. In either case, this points to a potentially volatile market condition.
In conclusion, while the FMR scenario offers a more attractive gross yield, the actual market conditions suggest that the lower market rent figure is more likely to reflect reality. Landlords and small-portfolio investors should base their projections on the $713 monthly market rent, which translates to an annual rent of $8,556, to ensure they are making conservative and realistic investment decisions.
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.