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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $163,901 | 0.86% | C |
| 4BR | $1,700 | $204,485 | 0.83% | C |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 58576 are significant and must be carefully considered. Firstly, the discrepancy between the market rent at $719 and the Fair Market Rent (FMR) at $870 for fiscal year 2026 indicates a challenge in tenant retention. Landlords will need to manage higher tenant turnover rates, which can be costly due to the time and expense involved in screening new tenants and preparing units for occupancy.
Vacancy exposure is another critical concern. The days on market (DOM) data is currently unavailable, suggesting that there might be issues in accurately predicting how long it takes to fill a vacant unit. This uncertainty can lead to periods of non-rental income, affecting cash flow and profitability.
Deferred maintenance poses a substantial risk, especially considering the typical home value in the area is $157,603 and the median income is $102,614. These figures imply that many homeowners might struggle to keep up with necessary repairs and upgrades, potentially leading to substandard living conditions that do not meet Section 8 requirements. Landlords must be prepared to invest in maintaining the property's condition to avoid penalties and ensure compliance with housing standards.
However, these risks are tempered by the high concentration of renters in the area, with a 17.0% renter share. High renter density typically translates into a robust demand for rental properties, including those accepting Section 8 vouchers. This demand can help mitigate some of the financial risks associated with vacancy and tenant turnover, ensuring a steady stream of qualified applicants.
Verdict: Moderate risk for a first-time Section 8 landlord. While there are challenges, the strong demand for rentals provides a counterbalance to the risks.
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.