Location: Grand Forks, ND | Metro: Grand Forks, ND-MN MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $200,355 | 0.7% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 56523 operate based on the SAFMR (Small Area Fair Market Rent) which for a two-bedroom apartment is set at $910 per month for the fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting the unique rental market conditions here. In comparison, the local market rent for a similar unit averages $950 according to recent Census ACS data.
A landlord participating in the Section 8 program receives payment from the Housing Choice Voucher Program. This payment covers the difference between what the tenant can afford and the actual rent. For ZIP 56523, the tenant's portion of the rent is typically 30% of their adjusted income. If we assume an average adjusted income of $1,500 per month, the tenant would contribute $450 towards the rent.
Additionally, the voucher includes utility allowances. These allowances vary but are generally around $200 for a two-bedroom apartment. Therefore, the total reimbursement a landlord would receive from the voucher program would be the sum of the tenant's contribution ($450) and the utility allowance ($200), totaling $650.
To calculate the reimbursement gap or surplus, subtract the total voucher reimbursement ($650) from the SAFMR ($910). This leaves a reimbursement gap of $260 per month for landlords renting a two-bedroom apartment at the SAFMR rate. However, if the landlord charges the local market rent of $950, the gap increases to $300 per month.
In summary, landlords in ZIP 56523 who participate in the Section 8 program should expect to receive $650 monthly from the voucher for a two-bedroom unit, leading to a reimbursement gap of either $260 when charging SAFMR or $300 when charging the local market rent. This gap must be covered by the landlord, representing a shortfall in revenue compared to the market rate.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.