Location: Steele County, ND | Metro: Steele County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
U.S. Census Bureau data (2024)
The ZIP code 58277 is situated in a rural area of North Dakota, primarily encompassing the small town of Underwood and surrounding communities. This neighborhood is characterized by a modest population of 195 residents, with a relatively low rental rate of 12.9%, indicating that it is predominantly owner-occupied. The median household income in this area stands at $70,208, suggesting a stable but not exceptionally high economic base.
When it comes to the economics of renting, the Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $930. However, the specific market rent for ZIP 58277 is not available, which can make it challenging to assess the local rental market's dynamics accurately. The absence of a median home value figure further underscores the limited data available for a comprehensive analysis of the housing market in this region.
Given these conditions, ZIP 58277 may not be the most attractive option for a hands-off voucher operator due to the scarcity of rental properties and the lack of detailed market data. On the other hand, for a hands-on value-add buyer, there could be opportunities to improve existing properties and offer competitive rental rates that align with the FMR. With a median income of $70,208, residents have the potential to afford higher rents if the quality and amenities of the properties are enhanced.
In conclusion, while the direct application of Section 8 vouchers might face challenges due to the limited number of renters and the unavailability of precise market rent data, there are still possibilities for strategic investment in this area. For those willing to actively manage and potentially upgrade properties, ZIP 58277 offers a niche market with room for improvement and growth.
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.