Location: McKenzie County, ND | Metro: McKenzie County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,210 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,620 |
| 5 Bedrooms | $3,039 |
| 6 Bedrooms | $3,404 |
| 7 Bedrooms | $3,676 |
| 8 Bedrooms | $3,860 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 58835 provides valuable insights into potential investment opportunities for landlords and small-portfolio investors. Based on the Fair Market Rent (FMR) for a two-bedroom apartment set at $1,380 annually for fiscal year 2026, the implied gross yield can be calculated. Given the median home value in the area is $351,493, the annualized rental income of $1,380 translates to an implied gross yield of approximately 0.39%. This is derived by dividing the annual rental income by the median home value: $1,380 / $351,493 = 0.0039 or 0.39%.
In contrast, the market rent is listed as N/A, which suggests that there isn't sufficient data to determine a reliable figure. However, if we were to assume that the market rent is higher than the FMR, it would imply a higher gross yield. For instance, if the market rent were $1,500 annually, the gross yield would increase to about 0.43%. This calculation is based on the same principle: $1,500 / $351,493 = 0.0043 or 0.43%.
The gross-yield comparison between the FMR and a hypothetical market rent scenario reveals a modest difference. The FMR-based gross yield stands at 0.39%, while the assumed market rent yields 0.43%. Given the 13.0% renter density in ZIP 58835, the FMR scenario appears more realistic. The lack of data on days on market (DOM) makes it difficult to assess the speed at which properties might be leased, but the lower gross yield under the FMR scenario aligns better with the relatively low renter population density.
To summarize, the Section 8 cap-rate analysis for ZIP 58835 indicates a gross yield of 0.39% when using the FMR for a two-bedroom apartment. An assumption of higher market rent could push this to around 0.43%. However, considering the limited renter base, the FMR scenario is likely more reflective of actual conditions.
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.