Location: Griggs County, ND | Metro: Griggs County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 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 58452 presents a unique challenge due to the limited availability of specific data points. To provide a comprehensive overview, we must consider two primary scenarios based on the Fair Market Rent (FMR) and the market rent.
In the first scenario, using the annualized 2BR FMR of $870 (for FY 2026, metro area), the potential rental income for a property can be calculated. Given that the median home value is not available, we cannot provide an exact cap-rate figure. However, we can calculate the implied gross yield. Assuming a 2BR unit is rented at the FMR rate, the annual rental income would be $10,440 ($870 x 12 months).
The second scenario involves the market rent, which is currently not available for ZIP 58452. Without this information, it's impossible to calculate the gross yield accurately. The lack of a market rent figure suggests that there may not be sufficient data to determine a reliable average rental price in this area.
The implied gross-yield based on the FMR is a conservative estimate and should be considered the baseline for investment returns in this ZIP code. This figure does not account for any potential increases in rental rates or improvements in property values. It also assumes a 100% occupancy rate, which may not be reflective of the actual market conditions.
The 0.0% renter density indicates that there are no current renters participating in the Section 8 program in ZIP 58452. This could mean several things: either the demand for Section 8 housing is low, or the supply of such units is insufficient. In either case, it highlights the need for careful consideration when investing in properties intended for Section 8 tenants.
The Days on Market (DOM) figure being not available suggests a lack of recent sales activity in the area, making it difficult to gauge how quickly properties are turning over or what the typical selling price might be. This absence of data further complicates the assessment of the cap-rate and gross-yield.
Given these constraints, the FMR-based gross-yield of $10,440 per year is the most concrete figure we have. However, it is important to note that this figure alone does not paint a complete picture of the investment opportunity in ZIP 58452. Investors should consider additional factors such as property management costs, vacancy rates, and local economic trends before making any decisions.
To conclude, while the FMR-based gross-yield provides a starting point for analysis, the lack of market rent and median home value data makes it challenging to derive a precise cap-rate. The 0.0% renter density and unavailable DOM data suggest a need for further investigation into the local rental market dynamics and housing supply before committing to Section 8 investments in this ZIP code.
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.