Location: Dunn County, ND | Metro: Billings County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
U.S. Census Bureau data (2024)
The ZIP code 58642 is situated in a rural area with a total population of 422 residents. This community is predominantly composed of homeowners, with only 11.8% of the population being renters. The median household income in this area is notably high at $101,700, indicating a relatively affluent demographic. However, the median home value is not available, which suggests that the housing market might be less active or data might be sparse due to the low population density.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,010. Unfortunately, specific data on market rents for ZIP 58642 is unavailable, making it difficult to compare FMRs with actual market rates. Given the limited number of renters and the high median income, it's possible that market rents could be higher than the FMR, but this cannot be confirmed without additional data.
Considering these factors, ZIP 58642 would likely be more suitable for a hands-off voucher operator rather than a hands-on value-add buyer. The small number of renters and the potentially higher market rents suggest that there is little room for significant rent increases through property improvements. Additionally, the rural setting and low population density mean that there is a smaller pool of potential tenants, making aggressive management strategies less effective.
A hands-off approach would involve selecting properties that can qualify for Section 8 tenancy based on the established FMR and ensuring compliance with all relevant regulations. This strategy minimizes the need for extensive tenant screening and property management activities, given the already limited demand for rentals in the area. For a hands-on value-add buyer, the opportunity cost might outweigh the benefits, as the market conditions do not support substantial rent appreciation through proactive property management.
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.