Location: Billings County, ND | Metro: Billings County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
U.S. Census Bureau data (2024)
The ZIP code 58627 presents an interesting case for real estate investment, particularly for those considering Section 8 participation. Let's address some common concerns that skeptical investors might have.
Will FMR $1,050 (metro FY 2026) cover the mortgage on a home in ZIP 58627? The median home value in ZIP 58627 is $285,000, which is slightly above the national average but comparable to nearby ZIP codes. Assuming a 20% down payment, the principal amount of a mortgage would be around $228,000. At an average interest rate of 4%, the monthly mortgage payment would be approximately $1,120. Given the HUD Fair Market Rent (FMR) of $1,050, it does not fully cover the mortgage payment. However, it's important to note that FMR is often used as a benchmark for rental pricing, not necessarily a cap.
Is there enough renter demand at 30.8%? The renter demand in ZIP 58627 stands at 30.8%. This figure suggests that nearly a third of the population are renters, indicating a reasonable demand for rental properties. While this percentage may seem low compared to urban areas, it aligns with the rural demographic trends. Additionally, the typical 1-bedroom rent is $702/month, which is below the FMR. This indicates that there is room for price increases without deterring potential tenants.
Will vouchers keep pace with market rents? The Section 8 voucher usage in ZIP 58627 is not explicitly detailed in the available data, but we can infer from broader trends. The FMR of $1,050 represents the maximum amount that the federal government will pay for rental assistance. If market rents rise faster than the FMR adjustments, there could be a gap. However, the FMR for 58627 has decreased by 4.4% year-over-year, suggesting that market rents may be stable or declining. This stability means that vouchers are likely to remain competitive in covering tenant costs.
In summary, while the FMR of $1,050 does not fully cover the mortgage payment on a median-priced home, the renter demand at 30.8% is sufficient for maintaining occupancy. Furthermore, the stability of market rents implies that vouchers will continue to support tenant payments effectively.
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.