Location: Mercer County, ND | Metro: Dunn County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
U.S. Census Bureau data (2024)
The ZIP code 58625 presents several challenges for landlords considering Section 8 investments. Firstly, tenant turnover is a significant concern due to the disparity between the market rent and the Fair Market Rent (FMR) of $1,030 set for FY 2026 in the metro area. This difference can lead to dissatisfaction among tenants who might find better deals outside of the program, thereby increasing turnover rates and associated costs.
Vacancy exposure is another critical issue. With no data available on the average days on market (DOM), it's difficult to predict how quickly properties can be filled. However, given that many Section 8 tenants have limited housing options, vacancies can persist longer than in non-assisted markets, leading to potential financial strain for landlords.
The exposure to deferred maintenance is also noteworthy. Without specific figures on the typical home value and median income in ZIP 58625, it's challenging to assess the financial capacity of residents to maintain their homes adequately. This can result in higher repair and maintenance costs for landlords, especially if they inherit properties that were previously neglected.
Despite these risks, the ZIP code has a high renter density, with 5.0% of the population being renters. High renter density often correlates with higher demand for housing vouchers, which can stabilize occupancy rates and reduce vacancy periods. This factor provides a counterbalance to the risks mentioned above.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.