Location: Williams County, ND | Metro: Williams County, ND
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,430 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 58843 provides valuable insights into the investment potential for landlords and small-portfolio investors. Based on the Fair Market Rent (FMR) for a 2-bedroom unit set at $1,640 annually (for FY 2026), the implied gross yield would be approximately 4.85%. This is calculated by dividing the annual rental income ($1,640) by the median home value ($338,693).
However, using the market rent figure of $1,356 annually, as reported by the Census ACS, the implied gross yield drops to about 4.00%. The calculation here involves the same division of annual rental income by the median home value.
The difference between these two gross yields highlights the impact of government-set rental rates versus market-driven rates. At 4.85%, the FMR scenario suggests a slightly more attractive initial return for investors, whereas the market rent scenario implies a lower return of 4.00%.
Given the 13.1% renter density in ZIP 58843, it's important to consider the likelihood of finding tenants willing to pay the higher FMR rate. With a relatively low percentage of renters, the competition for tenants might be fierce, making it challenging to consistently achieve the higher FMR rate.
The N/A-day Days on Market (DOM) indicates that there is insufficient data to determine how quickly properties are rented out. This lack of information makes it difficult to assess the vacancy risk associated with achieving the FMR rate.
In conclusion, while the FMR rate offers a higher gross yield, the market rent scenario, with its lower gross yield of 4.00%, appears more realistic given the limited renter population. Investors should weigh the potential challenges in maintaining occupancy at the higher rate against the benefits of the increased gross yield.
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.