Location: Bottineau County, ND | Metro: Bottineau County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
U.S. Census Bureau data (2024)
The ZIP code 58318 encompasses a neighborhood characterized by a relatively small population of 3,792 residents, where 23.5% of the inhabitants are renters. The median household income in this area stands at $85,729, indicating a middle-class community. Median home values are notably high at $247,803, reflecting the overall economic status and property appreciation potential within the region.
Moving into the realm of rental economics, the Fair Market Rent (FMR) set by HUD for the metro area for fiscal year 2026 is $890. In contrast, the actual market rent based on Census ACS data is $823. This discrepancy suggests a favorable environment for Section 8 tenants, as the FMR exceeds the current market rent, allowing for a higher likelihood of tenant retention and stability.
Given these conditions, ZIP 58318 could be an attractive option for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability of the housing market and the alignment between FMR and market rents reduce risk and ensure consistent cash flow. Meanwhile, hands-on investors can capitalize on the opportunity to improve properties and potentially command higher rents closer to the FMR, thereby increasing their profit margins. However, the relatively low percentage of renters might indicate a need for strategic targeting of properties that appeal to Section 8 participants, ensuring a steady stream of qualified tenants.
In summary, ZIP 58318 offers a balanced investment scenario, combining the security of a stable rental market with the potential for value enhancement. The key lies in understanding the local dynamics and selecting the right approach based on the investor's goals and risk tolerance.
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.