Fargo, ND Rental Market Analysis

Updated March 2026 — Investment metrics, cap rates, rent data, and neighborhood analysis for rental property investors in Fargo, North Dakota.

Median Price
$265,000
Avg Monthly Rent
$1,350
Avg Cap Rate
6.1%
Rent-to-Price
0.51%
Est. Cash-on-Cash
9.3%
Gross Rent Multiplier
16.4x
Est. DSCR (25% Down)
0.41
Annual Appreciation
3.8%

Fargo Rental Market Overview

Fargo benefits from NDSU, Microsoft's growing presence, and a thriving startup scene. One of the fastest-growing small metros in the country.

With a median home price of $265,000 and average monthly rents around $1,350, Fargo offers investors a rent-to-price ratio of 0.51%. At current market conditions, a typical rental property in Fargo generates an estimated cap rate of 6.1% and a cash-on-cash return of approximately 9.3% with 25% down financing at 6.5%.

Major Employers in Fargo

Rental demand in Fargo is supported by major employers including Sanford Health, NDSU, Microsoft, Blue Cross Blue Shield, Bobcat. These institutions provide the job base that drives consistent tenant demand for rental housing in Cass County.

Fargo ZIP Codes for Investors

Key ZIP codes in the Fargo metro area: 58102,58103,58104. Each neighborhood carries different risk/return profiles — use becvio's property analysis tools to evaluate specific deals.

Analyze a Fargo Rental Property

Why Invest in Fargo, ND Rental Properties?

Fargo stands out for rental property investors because of its competitive cap rates averaging 6.1%, combined with solid annual appreciation of 3.8%. The $265,000 median home price makes Fargo accessible for investors at various capital levels, while $1,350/month rents provide meaningful cash flow.

With a gross rent multiplier of 16.4x and estimated DSCR of 0.41 on conventional financing, Fargo rental properties may require careful underwriting to ensure positive cash flow. Investors using becvio can track these metrics in real-time across their entire portfolio.

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