Location: Bottineau County, ND | Metro: Bottineau County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 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)
A skeptical investor considering ZIP code 58793 might raise several valid concerns regarding the financial viability of investing in rental properties here. Let's address these objections directly using the available data.
Objection 1: Will Fair Market Rent (FMR) of $870 (metro FY 2026) cover the mortgage on a $121,510 home?
The FMR of $870 per month needs to be compared against the expected monthly mortgage payment for a home priced at $121,510. Assuming a standard 30-year fixed-rate mortgage with an interest rate of around 4%, the monthly mortgage payment would be approximately $585. This means that the FMR covers the mortgage payment comfortably, leaving room for maintenance, property taxes, and insurance costs. However, it's important to note that this calculation assumes a down payment has been made, which isn't specified in the data. Without a down payment, the mortgage amount could be higher, reducing the margin of safety.
Objection 2: Is there enough renter demand at 22.9%?
The renter occupancy rate of 22.9% suggests that less than a quarter of households in ZIP 58793 are renters. This might seem low compared to national averages, which can often exceed 30%. Despite this, the percentage alone does not tell the whole story. It's essential to consider the total number of households in the area and whether there is a growing trend in rental demand. The data provided does not specify the total number of households or trends, so we cannot definitively say if 22.9% represents sufficient demand. Landlords should research local population growth and employment trends to gauge future demand accurately.
Objection 3: Will vouchers keep pace with the market rents?
The data indicates that there is no information available on the current market rents in ZIP 58793. Without this baseline, it's impossible to determine if Housing Choice Vouchers will keep up with market rates. Vouchers are typically adjusted annually based on the local housing market conditions, but their adequacy depends on how closely they match actual rents. To make an informed decision, an investor would need to look into recent voucher amounts and compare them to current rental listings in the area. This comparison would reveal whether voucher holders can afford typical market rents, thus sustaining demand for subsidized housing.
In conclusion, while the FMR appears to cover the mortgage payment for a home valued at $121,510, questions remain about the sufficiency of renter demand and the alignment of voucher amounts with market rents. Investors should seek additional local data to fill these gaps before making investment decisions.
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.