Location: Mercer County, ND | Metro: Dunn County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 58636 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,030, while the Census ACS reports the current market rent at $960. This means there is a $70 difference, which translates to a 7.5% gap between the two figures.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to their advantage. Voucher tenants, who are guaranteed a certain level of income support through the Section 8 program, provide a stable source of rental income. By renting to these tenants, landlords can achieve higher yields compared to what they might receive from open-market tenants, who are willing to pay only the prevailing market rate of $960.
In ZIP 58636, where 26.4% of residents are renters and the median household income stands at $62,222, the financial stability offered by the Section 8 program becomes even more attractive. The lack of a reported median home value suggests a strong rental market, making it a strategic choice for investors to focus on rental properties rather than owner-occupied homes.
The higher FMR allows landlords to charge closer to $1,030 per month, thereby increasing their cash flow. This strategy is particularly effective in areas with a high percentage of renters and limited competition from homeownership, ensuring a steady stream of income that can outpace the market rent by a notable margin. For those considering the cost implications of housing voucher tenants, the benefits of receiving a government-subsidized rent that exceeds the current market rate far outweigh any perceived downsides.
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.