Location: Fargo, ND | Metro: Fargo, ND-MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56525, located within the Fargo, ND-MN MSA metro area, reveals several key points for landlords and small-portfolio investors.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for ZIP 56525 for fiscal year 2024 is set at $970. However, without specific market rent data, it's challenging to make a direct comparison. Given the lack of market rent figures, we must rely on the FMR as an indicator of what might be reasonable to charge in this area.
Moving on to the affordability of acquisition, the data provided does not specify the median home value, days on market (DOM), or the percentage of homes that have had their prices cut. This absence of information makes it difficult to assess how easy or costly it would be to acquire properties in this ZIP code. Landlords and investors should conduct further research to determine if property acquisition aligns with their investment criteria.
Regarding tenant demand, the data indicates a population of 100 with a renter share of 0.0%. This suggests that the number of potential tenants is extremely limited, which could pose challenges for maintaining occupancy rates and ensuring steady rental income.
Verdict: While the Fair Market Rent provides a benchmark for setting rental prices at $970, the lack of detailed market data makes it hard to definitively state whether this will cover costs and yield a profit. Acquisition affordability cannot be assessed due to missing data on home values and market conditions. Most critically, the near-zero renter share among a very small population of 100 strongly suggests that tenant demand is insufficient to support rental investments in ZIP 56525. Therefore, landlords and small-portfolio investors should proceed with caution and consider seeking opportunities in areas with higher tenant demand.
Data Sources: FMR data from HUD (2027). 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.