Location: McKenzie County, ND | Metro: Richland County, MT
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,210 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $225,583 | 0.63% | D |
| 3BR | $1,720 | $305,129 | 0.56% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 59221, which encompasses Cartwright, North Dakota, presents a unique opportunity for landlords and small-portfolio investors due to the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area for fiscal year 2026 is set at $1,540, while the Census ACS data indicates that the current market rent is only $943. This results in a gap of $597, or approximately 38.7%.
Given that the FMR exceeds the market rent, properties in this area are well-positioned to serve as yield plays for investors. Voucher tenants can provide a stable source of income, ensuring that landlords receive payments close to the FMR rate rather than the lower market rent. In Cartwright, where only 18.8% of residents are renters, the demand for affordable housing can be met without significantly impacting the overall rental market.
The median home value in Cartwright is $282,589, and the median income stands at $77,115. These figures suggest that the local economy is relatively stable, with homeownership being the predominant form of residence. However, the disparity between FMR and market rent means that landlords can potentially increase their yields by participating in the Section 8 program, attracting tenants who might otherwise struggle to find affordable housing.
Investors should be aware of the potential administrative costs associated with managing Section 8 properties. These include the time and resources needed to comply with HUD regulations and the initial screening process for tenants. Nonetheless, the financial benefits of receiving higher rents through vouchers can outweigh these costs, especially in a market where the gap between FMR and market rent is so pronounced.
In conclusion, the opportunity for landlords and small-portfolio investors in ZIP 59221 lies in the ability to capitalize on the difference between FMR and market rent. By accepting voucher tenants, they can achieve higher yields compared to the open-market rates, making it a strategic investment choice in this region.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.