Section 8 Fair Market Rent (FMR) for ZIP 58646 - 2027

Location: Stark County, ND | Metro: Adams County, ND

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,010
1 Bedroom	$1,020
2 Bedrooms	$1,290
3 Bedrooms	$1,640
4 Bedrooms	$2,160
5 Bedrooms	$2,506
6 Bedrooms	$2,807
7 Bedrooms	$3,032
8 Bedrooms	$3,184

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,161

Median Household Income

$56,667

Housing Units

706

Renter Percentage

24.5%

Occupancy Rate

76.8%

Renter Occupied

133

When considering whether to invest in ZIP code 58646 for Section 8 properties, follow this decision tree:

Does FMR $1,080 (metro FY 2026) cover debt service on a property?
- If yes: Proceed to the next question.
- If no: Do not invest. The Federal Market Rent (FMR) must be sufficient to meet the mortgage and other financial obligations.
Is market rent $500 (Census ACS) above, at, or below FMR?
- If above: The area may be overpriced relative to Section 8 rates, making it less attractive for such investments.
- If at or below: Proceed to evaluate demand.
Are 24.5% renters + N/A-day DOM enough demand?
- If yes: There is a sufficient number of renters in the area, indicating potential demand for Section 8 units. However, without the average days on market (DOM), it's hard to gauge how quickly properties might be rented out.
- If no: Insufficient demand exists for Section 8 properties. With only 24.5% of residents being renters, the pool of potential tenants may be too small to support the investment.

The Federal Market Rent (FMR) of $1,080 for ZIP 58646 must first be able to cover all costs associated with owning a property, including mortgage payments, maintenance, and other expenses. If the FMR does not sufficiently cover these costs, then investing in this ZIP code would not be advisable.

The market rent of $500 suggests that the area is priced below the FMR, which is favorable for Section 8 landlords. This lower price point means that the government subsidy will likely cover a significant portion of the rental income, reducing the risk of financial loss.

With 24.5% of residents renting their homes, there is a notable but not overwhelming demand for rental properties. However, the lack of data regarding the average days on market (DOM) makes it difficult to assess the speed at which rental units can be filled. If the DOM is low, indicating quick turnover, then the demand could be considered adequate despite the relatively small percentage of renters.

In conclusion, if the FMR covers debt service and the market rent is below the FMR, the decision hinges on whether the demand is sufficient. Given the limited data, particularly the missing DOM figure, the final decision will depend on additional local market analysis.

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.