By state · Midwest
North Dakota investor property lending
North Dakota steady DSCR. Property tax here runs 1%, 0.44 points below the Midwest average of 1.44%.
Carrying cost and DSCR
North Dakota's property tax rate in this dataset is 1% — 20 of the other 49 states run a higher rate, 24 run a lower one, and it comes in 0.44 points below the Midwest average of 1.44%. That rate isn't decorative: it sets the monthly escrow line inside a DSCR loan's PITIA, and a higher escrow means a higher rent is needed to clear the same coverage ratio at the same purchase price. Run North Dakota's rate through the DSCR calculator against a real rent and price to see where a specific deal actually lands.
North Dakota's top state income tax rate is 2.9%, against a Midwest average of 4.84%. Income tax doesn't enter a DSCR calculation, but it's a real number in the hold-period return an investor actually keeps.
What's specific to North Dakota
North Dakota steady DSCR. Oil/gas economy volatile.
This site's classifications for North Dakota
The four labels below are this site's own directional classification — not a lender's underwriting policy, a law firm's opinion, or a licensing determination. Each one states its basis; where the research note above doesn't specifically support a label, that's said plainly rather than dressed up.
DSCR-friendliness
mediumThis site classifies North Dakota's DSCR-friendliness as its own directional read, not a lender's underwriting policy or a legal standard. The basis is carrying cost: a property tax rate of 1% (0.44 points below the Midwest average of 1.44%) feeds directly into the monthly PITIA a DSCR ratio is measured against. Our research notes on North Dakota also describe specific rent-to-price or cash-flow characteristics in its metros, which factored into the label.
LLC-friendliness
highLLC-friendliness here reflects this site's general, directional read of the state's entity-formation and landlord-tenant posture. This dataset doesn't include state-specific LLC statute detail for North Dakota, so treat the label as directional, not legal guidance — confirm entity requirements with an attorney licensed in North Dakota.
Prepayment-penalty treatment
standardNorth Dakota is classified on prepayment-penalty treatment as this site's own directional read, not a citation to North Dakota law. Nothing in this dataset cites a specific statute or case; the label reflects a general sense of how restrictively the state treats prepayment penalties on business-purpose investor loans. Confirm the actual prepayment structure in the loan documents themselves, not from this label.
Short-term-rental rules
lenientThis dataset doesn't include STR-specific detail for North Dakota, so the label is directional only. STR ordinances change often and vary city by city — check current municipal and state rules directly before relying on this classification.
Top metros in North Dakota
The metros this dataset flags for investor activity in North Dakota: Fargo, Bismarck. This directory doesn't publish metro-level pages, so none of those names link anywhere further — treat the list as context for where activity concentrates, not a ranked or exhaustive list.
Which lenders write loans in North Dakota?
This directory does not maintain a lender-by-state list. Only 13 of the 37 lenders tracked here publish a statesCovered figure at all, and that figure is a count of how many states a lender covers — not a list of which ones. Nothing in this dataset maps a specific lender to North Dakota. State licensing for private and hard money lenders is not uniform, so a lender active next door may or may not be licensed here. Confirm coverage directly with each lender in the lender directory.
Questions
Does North Dakota have a state income tax?
Yes. North Dakota's top state income tax rate is 2.9%.
What property tax rate should I assume for a North Dakota DSCR calculation?
This directory lists North Dakota's property tax rate at 1%, which is 0.44 points below the Midwest average of 1.44%. Use it as a starting assumption, not a substitute for the actual county tax bill on a specific property.
Which lenders lend in North Dakota?
This directory does not publish a lender-by-state list. State licensing for private and hard money lenders is not uniform, so coverage has to be confirmed directly with each lender.
Is North Dakota's DSCR-friendliness label a lender's underwriting policy?
No — it is this site's own directional read, based on North Dakota's property tax burden and whatever rent-to-price detail this dataset carries for it, not a lender's policy or a legal standard.
Midwest in context
Across the 12 Midwest states in this dataset, the average property tax rate is 1.44% and the average top income tax rate is 4.84%. North Dakota runs 0.44 points below the Midwest average of 1.44% on property tax.