4plexes

North Dakota 4plexes: House Hacking in North Dakota

North Dakota, home to Fargo, Bismarck, and Grand Forks, offers a plains-state setting for house hacking with a fourplex. Fargo is the state's largest city, Bismarck is the state capital, and Grand Forks and Fargo are both university cities, giving buyers renter demand from schools, health care, government, and the energy and agriculture economy.

This page is educational information only and does not offer brokerage services in North Dakota.

Why Consider a 4plex in North Dakota?

Local Advantages

With approximately 799,000 residents (U.S. Census Bureau estimates, July 1, 2025), North Dakota's rental market centers on Fargo, the largest city, along with Bismarck, the state capital, and Grand Forks. North Dakota State University in Fargo and the University of North Dakota in Grand Forks give both cities a student renter base alongside year-round residents.

North Dakota landlord-tenant rules are set out in state law (Century Code) and are often described as relatively landlord-friendly, but notice and eviction procedures still must be followed exactly. Buyers should also weigh winter heating costs and, in the Red River Valley around Fargo and Grand Forks, flood history and flood insurance, since spring flooding is a recurring concern there.

Financing a North Dakota 4plex

If you plan to live in one unit, you may qualify for residential loan programs (including FHA) with lower down payments than commercial financing requires.

FHA loans are a federal program, and FHA loan limits for four-unit properties are set at the county level, not the state level, so the limit that applies depends on the county where the property sits. A lender familiar with four-unit properties in this state can confirm the county limit and the owner-occupancy rules. For down-payment help, check the state housing finance agency: whether a program allows four-unit properties varies by program, so confirm four-unit eligibility before counting on any assistance.

Loan and Down Payment Programs in North Dakota

North Dakota's state programs draw a sharp line that a four-unit buyer needs to see before anything else: the first mortgage may allow a four-unit building, while the assistance programs beside it do not. At the national level, five programs come up again and again for an owner-occupied four-unit purchase. FHA is the workhorse: HUD describes FHA financing as available on 1-4 unit properties with a down payment as low as 3.5% of the purchase price, and you must live in one unit. VA-backed purchase loans offer eligible veterans, service members, and qualifying surviving spouses financing with no down payment when the price does not exceed the appraised value, and a four-unit purchase with the buyer living in one unit is within the program's property scope, subject to lender confirmation. A standard conventional loan can also finance an owner-occupied four-unit building, but do not assume the 3% down terms advertised for one-unit homes apply here; the down payment for a four-unit conventional purchase is set by the lender and the loan program, so get it in writing. Fannie Mae HomeReady is a conventional option for buyers at or below 80% of area median income, with Desktop Underwriter financing up to 95% loan-to-value for 2- to 4-unit principal residences. Freddie Mac Home Possible is the parallel conventional option, also aimed at buyers at or below 80% of area median income with down payments as low as 3%, and it lists properties of up to four units where the buyer occupies one of them.

The North Dakota Housing Finance Agency's homeownership page describes FirstHome, a 30-year fixed-rate mortgage for low- to moderate-income buyers who have not owned a home in the last three years, with income and purchase-price limits. The agency's own June 2026 limits announcement notes approved higher acquisition-cost limits for existing two- to four-unit properties, which is the clearest sign that a FirstHome first mortgage can sit on a four-unit building — see NDHFA, Homeownership Program Eligibility Limits Updated. 4plex fit, first mortgage: yes, subject to those limits. The assistance beside it is different: NDHFA's Down Payment and Closing Cost Assistance (DCA) and Start programs are described in program guides as limited to one- and two-unit properties, with one unit owner-occupied. 4plex fit, DCA and Start assistance: no — do not plan on layering DCA or Start assistance onto a four-unit purchase. HomeAccess extends similar first-mortgage benefits to single parents, veterans, and households with a disabled or elderly member, and North Dakota Roots covers buyers above the FirstHome income or price caps; confirm four-unit eligibility for each with a participating lender.

How Many Cities Are in North Dakota?

North Dakota has 355 incorporated cities, according to the North Dakota League of Cities' 2025 count as cited by the state court system. That is a remarkable number of cities for a state of under 800,000 people, and it reflects a settlement pattern of small farm towns that incorporated early and never dissolved. Fargo, Bismarck, Grand Forks, and Minot hold most of the population, while dozens of the 355 cities have only a few hundred residents. A four-unit buyer will find the relevant stock concentrated in the larger cities and in oil-patch hubs such as Williston and Watford City, not spread evenly across all 355. Source: North Dakota Court System, Municipal Courts (355 incorporated cities, North Dakota League of Cities 2025 Annual Report).

How Many Counties Are in North Dakota?

North Dakota has 53 counties, each governed by a board of county commissioners, and NDHFA income limits vary by county and family size — so the county a four-unit building sits in changes both the FHA limit and the state program limit that apply. Cass County around Fargo and Burleigh County around Bismarck have their own published income tiers in NDHFA materials, distinct from the all-other-counties tier. Source: List of counties by U.S. state and territory (North Dakota comprises 53 counties).

Fire Insurance Costs in North Dakota

Bankrate's August 2025 state averages, as compiled by The Hartford, put the average annual homeowners insurance premium in North Dakota at $2,786. The price reflects a harsh-weather state: blizzards and extreme cold drive frozen-pipe and roof claims, spring flooding along the Red River adds water exposure, and summer hail and wind complete the set. Wildfire is a smaller factor here than in Montana or Alaska, but grassland fires in dry western counties do appear in underwriting. For a four-unit building, insurers will weigh roof age and heating system heavily — an older building with original wiring or an aging boiler can be quoted far above the statewide average, so a building-specific quote is essential. Source: The Hartford, average homeowners insurance rates by state (Bankrate, August 2025).

What to Look for in a North Dakota Fourplex

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