Location: Norman County, MN | Metro: Fargo, ND-MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
U.S. Census Bureau data (2024)
21.4% of residents in ZIP code 56585 are renters, indicating a significant portion of the population relies on rental housing. This statistic, combined with the $910 Fair Market Rent (FMR) for zip code 56585 as of fiscal year 2024, suggests that landlords can set competitive rents while still meeting government guidelines. The $850 average market rent reported by the Census Bureau's American Community Survey supports this, showing that the FMR is slightly above the current market rate. Landlords can leverage this gap to attract tenants who qualify for assistance programs.
$305,868 is the median home value in the area, which is relatively stable and provides a good benchmark for property values. Given the $71,250 median income, it's evident that the cost of living is manageable, but there is also a need for affordable housing options. While the data does not provide the exact days on market (DOM) or the percentage of homes that have had their prices cut, the overall economic indicators suggest a balanced market where both homeowners and renters coexist comfortably.
The Section 8 program, which has a Fair Market Rent of $910, offers landlords a reliable source of income with less risk compared to market-rate rentals. With the current market rent at $850, participating in the Section 8 program ensures landlords receive a consistent payment that is slightly higher than the typical rent in the area. This makes the ZIP code 56585 an attractive option for landlords looking to stabilize their cash flow and minimize vacancy rates.
In conclusion, the combination of a 21.4% renter share, a median income of $71,250, and a market rent of $850, along with the Section 8 FMR of $910, presents a favorable environment for landlords and small-portfolio investors. The participation in the Section 8 program is highly recommended for securing steady rental income in this area.
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.