Location: Grant County, ND | Metro: Bismarck, ND MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,490 |
| 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 market analysis for Section 8 investors in ZIP code 58535 reveals a significant opportunity for positive cash flow. The HUD Fair Market Rent (FMR) for FY 2024 stands at $940, which is notably higher than the Census ACS reported market rent of $570. This discrepancy indicates that voucher tenants can easily cover the rental costs, providing a substantial margin for landlords and small-portfolio investors.
To further illustrate the financial advantage, consider the HUD FMR is set at a level where it comfortably exceeds the local market rent. For instance, a property rented at the market rate of $570 would receive an additional $370 per month through the voucher program, assuming the voucher covers the difference between the FMR and the actual rent. This means that even with standard maintenance and vacancy costs, the cash flow remains strong and reliable.
The median home value in ZIP 58535 is not available, making it difficult to derive a precise rent-to-price ratio. However, given the lack of data on median home values, it suggests that the area is predominantly rental-focused rather than homeownership-driven. This characteristic aligns well with the Section 8 investment strategy, which prioritizes rental properties over those with potential for appreciation in value.
The dynamics of days on market (DOM) and price cut shares are also unavailable. Nevertheless, these metrics typically influence the buy-versus-rent decision. Since we cannot quantify these factors, the focus should remain on the guaranteed income stream provided by the Section 8 program. The stability of rental payments, coupled with the government subsidy, offers a secure investment environment.
In conclusion, the strongest angle for investors in ZIP 58535 is the cash flow potential. With the HUD FMR significantly above the local market rent, landlords can expect a steady and robust income from voucher tenants, making this area highly attractive for Section 8 investments.
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.