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)
The ZIP code 58532, located in Kidder County, North Dakota, presents a unique opportunity for inclusion within a Section 8 portfolio strategy. Given the data available, this area is best categorized as a cash-flow anchor. The primary reason for this classification is the significant spread between the Fair Market Rent (FMR) and the actual market rents.
In fiscal year 2024, the FMR for a two-bedroom apartment in ZIP 58532 is set at $960. This figure serves as a benchmark for rental assistance payments under the Section 8 program. However, due to the lack of specific market rent data, it's evident that the FMR is likely higher than what the local market demands. This means that landlords participating in the Section 8 program can expect stable and reliable cash flow from tenants receiving rental assistance, without having to adjust their rents significantly to attract non-assisted tenants.
The absence of detailed market rent and median home value data further supports the cash-flow anchor designation. In areas where market rents are lower than FMRs, landlords benefit from a guaranteed income level that can be higher than what they might otherwise achieve through standard rental agreements. This stability is particularly valuable in regions with economic uncertainty or low population density, such as parts of North Dakota, where maintaining consistent occupancy can be challenging.
While the median income of $54,500 suggests that there is a reasonable financial base supporting the local economy, the 44.9% renter share indicates a substantial portion of the population relies on rental housing. This high percentage of renters can contribute to a steady demand for rental properties, but it does not necessarily imply strong property appreciation potential given the lack of specific data on price-cut shares and days on market (DOM).
In summary, ZIP 58532 should be considered a cash-flow anchor within a Section 8 portfolio strategy. Landlords can leverage the FMR of $960 to ensure consistent and predictable income, even if market rents are lower. This stability is crucial for managing risks associated with fluctuating tenant populations and economic conditions, making it an attractive option for those looking to secure a reliable revenue stream.
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.