Location: Kidder County, ND | Metro: Bismarck, ND MSA
| 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 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 58524 for Section 8 investments, follow this decision tree:
Step 1: Debt Service Coverage Ratio (DSCR)
The Fair Market Rent (FMR) for ZIP 58524 in fiscal year 2024 is $960. For a landlord to consider buying here, the FMR must sufficiently cover the debt service on the property. Given that the average property price and thus the debt service amount are not provided, we cannot definitively state whether the FMR clears the debt service. This step requires specific financial details of the property in question.
Step 2: Market Rent Comparison
The next critical factor is comparing the FMR to the market rent. In ZIP 58524, the market rent is not specified, making it impossible to determine if it is above, at, or below the FMR. If the market rent is significantly higher than $960, then relying solely on Section 8 income might not be the most profitable strategy. Conversely, if the market rent is close to or below $960, Section 8 could be a viable option.
Step 3: Demand Analysis
In ZIP 58524, 11.3% of residents are renters. The Days on Market (DOM) figure is not provided, which is essential for assessing rental demand. However, assuming the DOM is reasonable, say under 30 days, this indicates a steady demand for rentals. With these conditions, there would be sufficient demand for Section 8 properties.
Decision Tree Summary
Note: The analysis is contingent upon having accurate financial details of the property, including its purchase price and expected debt service, as well as the precise market rent and DOM figures. Without these specifics, the decision can only be partially informed by the available data.
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.