8 North Dakota cities ranked by estimated cap rate. The average cap rate across North Dakota markets is 2.8%, with median home prices averaging $284K and rents averaging $1,126/mo. Jamestown leads with a 3.3% cap rate at a $225K median price. Property taxes average 0.98% across North Dakota markets.
North Dakota offers 8 investable rental markets tracked by CapRateCity. The state average cap rate of 2.8% is near the 3.81% national average. No cities pass the 1% rule at median prices, so value-add strategies are essential.
Prices and rents: North Dakota home prices average $284K, which is 15% below the national average of $333K. Rents average $1,126/mo. The most affordable entry point is Wahpeton at $215K, while Jamestown offers the highest cap rate at 3.3%.
Taxes and costs: Property taxes average 0.98% across North Dakota, below the 1.08% national average — a meaningful cash flow advantage that adds roughly $284 per year to NOI on an average-priced property. Bismarck has the lowest rate at 0.96%.Vacancy averages 5.2%, tighter than the national average — favorable for landlords.
Growth outlook: Population growth across North Dakota averages 1.00% per year, led by Fargo at 1.5%. Home values are appreciating at 2.4% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: North Dakota is primarily an appreciation market. Cash flow investing requires below-median purchases or value-add strategies. Consider whether the growth and appreciation potential justifies tighter margins.