Location: Fargo, ND | Metro: Fargo, ND-MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $830 |
| 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 |
U.S. Census Bureau data (2024)
The median income in ZIP code 56536 stands at $69,375, which provides insight into the financial capabilities of households in the area. At a market rate of $531 per month (as reported by the Census ACS), renting becomes a significant portion of the average household's budget. This rate represents approximately 9.6% of the median annual income, indicating that while it is affordable, it still leaves little room for other expenses.
In contrast, the Fair Market Rent (FMR) set at $990 for zip code 56536 in fiscal year 2024 highlights a substantial affordability gap for renters. The difference between the market rate and the FMR suggests that many households may struggle to find suitable housing without assistance. This disparity also means that landlords who accept Section 8 vouchers might have a more stable tenant pool, albeit at a higher rental rate.
With only 10.1% of the 502-person population being renters, competition among landlords could be relatively low. However, the limited number of renters also implies a smaller pool of potential tenants, making it crucial for landlords to consider their rental strategy carefully. Accepting vouchers could ensure a steady stream of income, even if it means dealing with government regulations and possibly longer wait times for repairs and maintenance.
The takeaway for landlords is clear: while the market rate of $531 is lower than the FMR of $990, accepting Section 8 vouchers offers a guaranteed income closer to the FMR. Landlords should weigh the benefits of consistent cash flow against the administrative challenges of working with vouchers. For those focused on maximizing short-term profits, cash-paying tenants might be preferable, but they should prepare for a potentially smaller pool of available renters.
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.