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 | $209,754 | 0.67% | D |
| 4BR | $1,700 | $267,199 | 0.64% | D |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 56556 in the Grand Forks, ND-MN MSA reveals several key points for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for FY 2024 is set at $910, while the market rent based on Census ACS data is $593. This comparison indicates that voucher tenants will cashflow positively at the FMR rate, providing a significant margin above the actual market rent.
To derive the rent-to-price ratio, we use the median home value of $210,432. With an average monthly rent of $593, the annual rent is approximately $7,116. Dividing the annual rent by the median home value gives us a rent-to-price ratio of about 3.4%, suggesting that rental income alone would not cover the mortgage payment on a median-priced home in this area. However, for those who own their properties outright or have low-cost financing, this ratio supports a strong investment case.
The data shows that the median days on market (DOM) and the percentage of homes that experienced price cuts are not applicable (N/A), which implies a stable housing market. This stability is crucial for investors looking to avoid fluctuations in property values and rental rates. It also suggests that there is little pressure on sellers to reduce prices, indicating a healthy local economy and demand for housing.
In conclusion, the strongest investor angle in ZIP 56556 is cashflow. Landlords can expect a substantial positive cashflow from Section 8 voucher tenants due to the gap between the HUD FMR and the actual market rent, making it an attractive opportunity for those focused on generating rental income.
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.