DSCR Loans in North Dakota

Last updated: May 2026

North Dakota eliminated its individual income tax in 2024, adding to an already investor-friendly tax profile. The state's economy is heavily tied to energy and agriculture, which creates boom-and-bust rental dynamics in oil-patch towns but more stability in Fargo and Bismarck.

Property Taxes in North Dakota

North Dakota property taxes are moderate and vary by county. Cass County (Fargo) effective rates average about 1.05%, Burleigh County (Bismarck) runs near 0.95%, and Williams County (Williston) sits around 0.90%. Township-level special assessments for infrastructure can add meaningful cost in newer-development areas.

Insurance Costs

Typical investment property insurance in North Dakota runs $1,650/yr. North Dakota's severe-weather season brings hail and high winds from June through August, particularly in the western oil-patch region. Flood insurance may be required along the Red River corridor near Fargo, where major floods have occurred in recent decades.

Landlord-Tenant Laws

North Dakota is very landlord-friendly with minimal regulation. Eviction for nonpayment requires only a three-day written notice, and courts process cases quickly, often within two weeks. There is no rent control, no Just Cause requirement, and security deposits are capped at one month's rent (two months for tenants with pets). Lease terms are straightforward and enforcement is efficient.

Top Investment Markets in North Dakota

DSCR Considerations in North Dakota

North Dakota's elimination of state income tax improves after-tax returns but doesn't directly affect DSCR calculations. The key underwriting risk is economic concentration: oil-patch markets like Williston can see rents swing 20-30% with crude prices, so lenders may apply stricter vacancy assumptions in those areas. Fargo and Bismarck offer much more stable rental fundamentals for DSCR qualification.