Location: Burke County, ND | Metro: Burke County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 58772 is centered around the 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 $870, while the current market rent, according to the Census ACS, stands at $674. This creates a gap of $196, or approximately 29%, between what landlords can charge under the Section 8 program and the prevailing market rates.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to enhance their rental yields. By participating in the Section 8 program, they can charge closer to the FMR rate, thereby increasing their monthly cash flow. This makes the ZIP 58772 an attractive location for those looking to maximize returns on their investment properties.
In the broader context of ZIP 58772, where 58.8% of residents are renters and the median household income is $115,405, the opportunity to attract voucher tenants becomes even more compelling. The high percentage of renters indicates a strong demand for affordable housing, which aligns well with the Section 8 program's objectives. Furthermore, the median income suggests that many residents might benefit from the financial assistance offered through housing vouchers, making it easier for landlords to fill vacancies and maintain steady occupancy levels.
However, it is important to note that there are costs associated with housing voucher tenants. Landlords must ensure compliance with HUD regulations, which can include regular inspections and maintenance. Additionally, the process of accepting voucher tenants can be more time-consuming compared to traditional leasing arrangements, involving additional paperwork and coordination with local housing authorities.
Despite these considerations, the potential for higher rental income due to the FMR being above market rates makes the ZIP 58772 a strategic choice for investors aiming to capitalize on government-assisted housing programs. The combination of a substantial yield advantage and a robust rental market driven by the high percentage of renters and median income levels presents a clear opportunity for savvy real estate analysts and investors.
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.