Section 8 Fair Market Rent (FMR) for ZIP 58504 - 2027

Location: Emmons County, ND | Metro: Bismarck, ND MSA

Investment Score for ZIP 58504

Monthly Rent (2BR)

$1,060

Median Price (2BR)

$256,000

1% Rule

0.41%

Annual Yield

4.97%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$870
1 Bedroom	$930
2 Bedrooms	$1,060
3 Bedrooms	$1,480
4 Bedrooms	$1,700
5 Bedrooms	$1,972
6 Bedrooms	$2,209
7 Bedrooms	$2,386
8 Bedrooms	$2,505

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,060	$256,000	0.41%	F
3BR	$1,480	$331,265	0.45%	F
4BR	$1,700	$386,607	0.44%	F
5BR	$1,972	$472,186	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

30,212

Median Household Income

$85,637

Housing Units

12,617

Renter Percentage

25.6%

Occupancy Rate

96.1%

Renter Occupied

3,101

To determine if a landlord should invest in ZIP 58504 (Bismarck, ND) for Section 8 properties, follow these steps:

Step 1: Debt Service Coverage Ratio (DSCR)

If the Fair Market Rent (FMR) of $940 per month does not cover the debt service on a property valued at $350,760, then the answer is No. The FMR must be sufficient to ensure that the rental income covers the mortgage payments and other expenses.

Step 2: Market Rent Comparison

If the Zillow Observed Rental Index (ZORI) of $1,431 is significantly higher than the FMR of $940, the answer is It Depends. While the market rent is favorable, the demand for Section 8 properties must still be considered.
If the ZORI is equal to or slightly below the FMR, the answer is No. This indicates that there might not be enough market incentive to justify investment in Section 8 properties.

Step 3: Demand Assessment

If the percentage of renters at 25.6% combined with a days on market (DOM) of 20 days suggests strong demand, the answer is Yes. A relatively low DOM indicates that listings are moving quickly, which is a positive sign for rental property investment.
If the DOM is high despite the renter percentage, the answer is No. This could indicate issues with finding tenants or other local market conditions that make the area less attractive for Section 8 investments.

Based on the data provided, the decision to invest in ZIP 58504 for Section 8 properties hinges on the ability of the FMR to cover debt service and the balance between market rents and tenant demand. If the FMR of $940 is insufficient for covering the debt service on a property costing $350,760, do not proceed with the investment regardless of market conditions. If the FMR can cover the debt service and the ZORI is above the FMR, evaluate the strength of demand. With a DOM of 20 days, the area shows signs of a healthy rental market, but the final decision should consider all factors including the FMR's ability to meet financial obligations.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.