Location: Bismarck, ND | Metro: Bismarck, ND MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,520 | $333,236 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 58554 is situated in a neighborhood that is predominantly residential, with a population of 29,479 residents. Approximately 27.2% of these residents are renters, indicating a modest demand for rental properties. The area enjoys a median household income of $80,120, which is relatively strong, suggesting that many residents have the financial capacity to afford higher rents. The median home value in the area is $341,730, reflecting a stable housing market with a mix of homeowners and renters.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 58554 in fiscal year 2024 is set at $950. This figure represents the maximum amount that a Section 8 voucher holder can be expected to pay for rent. In contrast, the market rent, measured by the Zillow Observed Rent Index (ZORI), stands at $1,143. This indicates that landlords who participate in the Section 8 program will receive less than the market rate, but still a significant portion of it.
Given the economic landscape of ZIP 58554, it would be suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the steady demand for affordable housing and the reliable payment structure of the Section 8 program make it a low-risk investment. The difference between the FMR and market rent provides a buffer that can cover maintenance costs and unexpected expenses.
On the other hand, hands-on value-add buyers could find opportunities to improve property values and rents over time. With a median income of $80,120, there is potential for increasing rents above the FMR as the local economy grows and more residents seek higher-quality living spaces. However, such investments require active management and a willingness to invest in property improvements to justify higher rents.
In conclusion, ZIP 58554 presents a balanced opportunity for Section 8 investors. Whether you choose a passive approach or aim to actively manage and enhance your properties, the area's economic indicators support a stable and potentially profitable investment environment.
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.