Location: McLean County, ND | Metro: McHenry County, ND HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $890 |
| 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)
To determine if you should buy in ZIP code 58778 for Section 8 purposes, follow this decision tree:
Step 1: The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $870. This figure must cover your debt service on any property you consider purchasing. If the debt service is higher than $870, then the answer is No. You cannot afford to maintain a property that costs more than the FMR in rental income.
Step 2: Assess whether the market rent in ZIP 58778 is above, at, or below the FMR. With the provided data indicating the market rent is N/A, you need to conduct a local market analysis. If the market rent is significantly above $870, then the answer is It Depends. While you could potentially earn more from market rent, relying solely on Section 8 might not be optimal. If the market rent is around or below $870, then proceed to Step 3.
Step 3: Evaluate the demand for rentals in ZIP 58778. The data shows that only 0.0% of residents are renters, which indicates an extremely low rental demand. Additionally, the Days on Market (DOM) is N/A, suggesting either a lack of available data or an unusual situation where properties are not being listed or sold quickly. Given these conditions, the answer is No. There isn't sufficient tenant demand to justify a Section 8 investment in this ZIP code.
If you reach a point where the data is insufficient or unclear, such as with the N/A values for market rent and DOM, you must gather more specific information about the local rental market before making a decision. However, based on the current data, the low percentage of renters makes ZIP 58778 a poor choice for Section 8 investments.
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.