Location: Bottineau County, ND | Metro: McHenry County, ND HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 58740 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,180, while the Census ACS reports the market rent at $1,326. This creates a gap of $146, which is approximately 12.5% below the market rate.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors should be aware of the financial implications of accepting housing voucher tenants. While vouchers can provide a steady stream of rental income, they do so at a rate that is below what could be earned by renting to non-voucher tenants at the prevailing market rate. This scenario transforms the investment into a yield play rather than a profit maximization strategy. Landlords must consider whether the stability of guaranteed payments outweighs the potential loss of income from renting above the FMR.
In ZIP 58740, the context is further defined by the fact that only 16.9% of residents are renters, indicating a primarily owner-occupied market. The median home value stands at $238,521, and the median income is $87,321. These figures suggest that the local economy supports a relatively high standard of living, but the low percentage of renters implies limited demand for rental properties. Consequently, landlords who choose to participate in the Section 8 program must balance the benefits of stable occupancy against the reduced rental income. The decision to accept housing vouchers should be made with a clear understanding of the trade-offs involved, particularly in light of the significant difference between the FMR and the actual market rent.
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.