Location: Towner County, ND | Metro: Towner County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $930 |
| 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 Section 8 cap rate analysis for ZIP code 58339 is based on the Fair Market Rent (FMR) for a two-bedroom apartment, which is set at $870 annually for fiscal year 2026. The median home value in this area is not available, nor is the market rent. However, we can still derive a rough picture of the gross yield for both scenarios.
In the first scenario, using the Section 8 FMR, if we assume an average occupancy rate of 100%, the annual rental income for a two-bedroom property would be $870 * 12 months = $10,440. Given that the median home value is not available, we cannot calculate a precise cap rate. However, the implied gross yield can be estimated based on the FMR alone. If we were to use the FMR as a proxy for the purchase price of a home, the gross yield would be approximately $10,440 / $870 = 12 times, or 1200%. This figure is clearly unrealistic due to the lack of a proper purchase price basis.
In the second scenario, where we do not have a market rent figure, we must rely on other metrics to provide context. With a renter density of 33.3%, it suggests that roughly one-third of the population in ZIP 58339 are renters. Without the market rent data, it's impossible to determine a specific gross yield. However, the absence of a market rent indicates that either there isn't enough data to establish a trend, or the local rental market might not be robust or well-documented.
The Days on Market (DOM) is also not available, which means we cannot assess how quickly properties are typically leased in this area. A high DOM could indicate a slower rental market, potentially leading to lower gross yields when considering vacancy rates and time costs.
Given the limited data, the first scenario using the FMR provides a theoretical gross yield that is not reflective of actual investment performance. In reality, the gross yield would depend on the actual median home value and market rent. Since these figures are not available, it's advisable to conduct further research into the local real estate market and rental trends to make informed investment decisions.
The 33.3% renter density implies that there is a significant portion of the population that could potentially be Section 8 tenants, but without knowing the market rent, it's difficult to gauge the competitiveness of the FMR against what landlords might otherwise charge. For a more accurate assessment, investors should look into the local rental market dynamics and consider consulting local realtors or housing authorities for more detailed insights.
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.