Location: Stark County, ND | Metro: Billings 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 | $1,120 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,880 | $229,181 | 0.82% | C |
U.S. Census Bureau data (2024)
The median income in ZIP code 58622 stands at $82,692, which places significant constraints on households when it comes to affording the market rate rent of $1,051. To put this into perspective, the monthly housing cost represents approximately 12.7% of the median annual income, assuming no other financial burdens. This calculation reveals a clear affordability challenge for many residents.
Comparatively, the Fair Market Rent (FMR) set at $1,150 for metro areas in fiscal year 2026 exceeds the current market rate by nearly $100. This suggests that while the FMR aims to reflect rental market conditions, it currently overestimates what is typical in ZIP 58622. The higher FMR could be beneficial for landlords who accept Section 8 vouchers, as they might receive slightly more than the going market rate.
With only 21.0% of the 1,653 population being renters, competition among landlords is likely to be fierce. The limited number of renters means that landlords must cater to a smaller pool of potential tenants, making the affordability gap a critical factor in tenant selection and retention. Landlords should consider the financial realities faced by renters in deciding whether to accept vouchers or rely solely on cash-paying tenants.
The takeaway for landlords is that while accepting vouchers can provide a stable source of income that is slightly above the current market rate, the overall demand for rentals is low. Therefore, landlords should weigh the benefits of voucher stability against the risks of lower occupancy rates and the costs associated with participating in the Section 8 program. A strategic mix of both voucher and cash-pay tenants could optimize profitability and reduce risk in this competitive 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.