Section 8 Fair Market Rent (FMR) for ZIP 58802 - 2027
Location: Williams County, ND | Metro: Williams County, ND
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,130 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
To determine if a landlord should invest in ZIP code 58802 (Unknown, ND) for Section 8 properties, follow these decision points:
- Does the Fair Market Rent (FMR) of $1,200 cover the debt service on a property?
- If yes: Proceed to the next question.
- If no: Do not purchase a property in this area for Section 8 tenants, as the rental income will not be sufficient to meet financial obligations.
- Is the market rent above, at, or below the FMR of $1,200?
- If above: The area may offer opportunities to supplement Section 8 income with higher market rents, but consider the risk of vacancy rates if market conditions change.
- If at: There is no additional market premium to rely on, so ensure that the FMR fully covers the debt service and any other operational costs.
- If below: This suggests that the market rent is lower than the FMR, which could indicate a slower rental market. However, Section 8 tenants provide a stable source of income, so the decision depends on the landlord's risk tolerance and the specific details of the property's financials.
- Are the percentage of renters and the days on market (DOM) indicative of sufficient demand?
- If there is a high percentage of renters and low DOM: There is strong demand for rentals in this area, making it a favorable location for Section 8 investments.
- If there is a low percentage of renters or high DOM: Demand for rentals may be insufficient. Landlords should carefully evaluate the potential for vacancies and the impact on their cash flow before proceeding.
The final decision to purchase a property in ZIP 58802 for Section 8 tenants hinges on the answers to these questions. If the FMR does not cover the debt service, the answer is clear: do not buy. If the market rent is at or below FMR, the decision becomes more nuanced, depending on the overall demand for rentals and the landlord's willingness to take on risk.
Data Sources: FMR data from HUD (2027).
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.