Location: Mercer County, ND | Metro: Bismarck, ND MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 58631 in Mercer County, North Dakota, reveals several key points that can inform investment decisions. The HUD Fair Market Rent (FMR) for the area is set at $860 for fiscal year 2024. This figure represents the maximum amount landlords can charge for a unit under the Section 8 program.
In comparison, the market rent for ZIP 58631, based on Census American Community Survey (ACS) data, stands at $775. This indicates that voucher tenants will generally cashflow positively at the FMR rate, providing a buffer for landlords against potential rent shortfalls.
To further analyze the investment opportunity, consider the median home value in the area, which is $131,164. Using this figure, we can calculate the rent-to-price ratio. A ratio of approximately 0.65% ($775 annualized rent / $131,164 median home value) suggests that rental income constitutes a significant portion of the property's value, making it a strong candidate for buy-and-hold strategies.
Note that the median Days on Market (DOM) and the percentage of homes that experienced price cuts are not applicable (N/A) in this analysis. However, these metrics would typically be important indicators of the health of the housing market and could influence the rent-versus-buy dynamics.
The strongest angle for investors in ZIP 58631 is likely to be cashflow, given the positive difference between the HUD FMR and the market rent, coupled with the relatively low median home value. This combination supports a stable and profitable investment strategy for both landlords and small-portfolio investors.
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.