Location: Towner County, ND | Metro: Ramsey County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 58324 might have several concerns regarding the viability of renting properties under the Section 8 program. Here, we address these key objections with available data.
Objection 1: Will Fair Market Rent (FMR) of $890 cover the mortgage on a $134,961 home?
The FMR of $890 for ZIP 58324 does not directly cover the mortgage payment on a $134,961 home. However, the FMR is designed to reflect the average rental cost in the area, which can be used to gauge potential rental income. To fully assess if the FMR will cover the mortgage, an investor needs to consider the interest rate and term length of their mortgage. For instance, at a typical fixed-rate of around 4%, a $134,961 mortgage would result in monthly payments significantly higher than $890. This highlights the need for additional income sources or strategies to offset the gap between FMR and mortgage costs.
Objection 2: Is there enough renter demand at 29.7%?
The renter demand in ZIP 58324 stands at 29.7%. While this percentage indicates a portion of the population that may be interested in renting, it's essential to understand what this means in practical terms. A 29.7% rental rate suggests a moderate demand, but it also implies that over two-thirds of the housing units are owner-occupied. This could indicate a preference for homeownership in the area, which might limit the pool of potential renters. However, the presence of Section 8 tenants can help stabilize occupancy rates and provide a reliable source of income for landlords willing to participate in the program.
Objection 3: Will vouchers keep pace with $768 market rents?
The average market rent in ZIP 58324 is $768, which is below the FMR of $890. The concern here is whether Section 8 voucher amounts will match or exceed this figure. Historically, voucher amounts tend to lag behind market rents, but they do adjust periodically based on HUD guidelines. Investors should monitor local HUD updates to ensure they remain informed about any changes in voucher values. Given the current data, it appears that the FMR provides a buffer above the average market rent, which could work in favor of landlords receiving adequate compensation through the voucher program.
While the data offers insights into the financial aspects of renting in ZIP 58324 under the Section 8 program, it's important to note that individual circumstances can vary widely. Factors such as property condition, location within the ZIP code, and competition from other landlords all play roles in determining actual rental income and demand.
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.