Location: Stutsman County, ND | Metro: Stutsman County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $800 |
| 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)
A skeptical investor might question whether the Fair Market Rent (FMR) of $870 for ZIP 58426 will sufficiently cover the mortgage on a home. Given the median home value is $175,800, it's important to note that the FMR is projected for the metro area in fiscal year 2026. However, the data does not provide specific mortgage details for this ZIP code. To accurately assess if the FMR will cover mortgage payments, one would need to consider factors such as interest rates and down payment amounts.
The same investor could raise concerns about the low renter demand, with only 29.5% of the population being renters. This figure, however, does not necessarily indicate a lack of demand. In ZIP 58426, the median monthly rent for a four-bedroom home is $1,390, suggesting that there is a niche market for higher-end rentals. Additionally, the median home cost being significantly lower than the national average ($175,800 vs. $338,100) makes it easier to find affordable properties to rent out.
Another objection might be whether housing vouchers will keep pace with market rents. Unfortunately, the data provided does not specify the usage of housing vouchers in ZIP 58426. While it's true that voucher amounts are often tied to the FMR, the effectiveness of these vouchers in covering market rents can vary widely based on local economic conditions and the availability of affordable housing units. In ZIP 58426, the relatively low median home value and steady appreciation rates suggest that vouchers might be more effective in covering rent here compared to more expensive markets.
The median age of homes in Courtenay (ZIP 58426) is 78 years, indicating a mature housing stock. This could affect the desirability and potential renovation costs for rental properties. Despite this, the housing market has shown a 10.5% appreciation in the last year, which is positive for long-term investment prospects.
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.