Location: Mountrail County, ND | Metro: Renville County, ND HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap rate for ZIP code 58718 reveals a significant difference between using the Fair Market Rent (FMR) and the market rent figures. The annualized FMR for a two-bedroom property in ZIP 58718 is set at $1,040 per month for FY 2026, which translates into an annual income of $12,480. Given the median home value of $328,350, the implied gross yield when utilizing the FMR would be approximately 3.8%. This calculation is derived by dividing the annual rental income by the property value.
In contrast, the Census ACS reports the market rent for a two-bedroom property at $822 per month, leading to an annual income of $9,864. Using the same median home value, this scenario yields a gross income of about 3.0% annually. Therefore, the FMR provides a higher gross yield compared to the market rent.
However, the choice between these two figures should consider the local market conditions. ZIP 58718 has a renter density of 24.7%, indicating that less than a quarter of the residents are renters. This low percentage suggests that the demand for rental properties might be limited, making it more challenging to consistently achieve the FMR through Section 8 tenancy. Additionally, the N/A-day DOM (days on market) implies that there is insufficient data to determine how quickly properties are rented out, which adds uncertainty to the investment outlook.
Given these factors, the market rent figure of $822 per month, resulting in a gross yield of 3.0%, is likely more realistic for most investors. While the FMR offers a higher gross yield at 3.8%, the actual rental income received may be closer to the market rent due to the lower renter density and potential challenges in securing tenants. Thus, investors should plan their financial projections based on the market rent to ensure they have a conservative estimate that aligns with probable rental income.
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.