Location: McLean County, ND | Metro: McLean County, ND
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 | $890 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $223,253 | 0.63% | D |
U.S. Census Bureau data (2024)
The potential risks for landlords investing in ZIP code 58565 through the Section 8 program are significant and must be carefully considered. Tenant turnover is a notable concern, as the Fair Market Rent (FMR) for the area is set at $870 for fiscal year 2026, which might not align with the local market rent. This misalignment can lead to higher tenant churn rates, impacting rental income stability.
Vacancy exposure is another critical factor. With an unspecified number of days on the market (DOM), it's challenging to predict how long properties might remain vacant between tenants. This uncertainty can result in financial strain, especially when combined with the lower FMR compared to potential market rents.
Deferred maintenance is a substantial risk due to the economic profile of the area. The typical home value stands at $207,083, while the median household income is $73,333. These figures suggest that many residents may struggle to afford necessary repairs and upgrades, leading to potential property degradation over time if not managed properly.
However, these risks are somewhat offset by the high concentration of renters in the area. The renter share is 16.4%, indicating a robust demand for rental properties, particularly those accepting Section 8 vouchers. High renter density generally translates into greater competition among tenants for available units, potentially reducing vacancy periods and increasing the likelihood of finding reliable tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.