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 |
|---|---|---|---|---|
| 2BR | $1,010 | $227,991 | 0.44% | F |
| 3BR | $1,410 | $275,191 | 0.51% | F |
| 4BR | $1,700 | $330,446 | 0.51% | F |
| 5BR | $1,972 | $395,256 | 0.5% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 56721 does not favor landlords. The Fair Market Rent (FMR) set at $910 for the fiscal year 2024 is significantly lower than the market rent, which stands at $1,375 according to the Zillow Observed Rent Index (ZORI). This means that landlords who participate in the Section 8 program will receive less than what the market demands, resulting in a potential loss unless they can manage costs effectively.
Acquisition in ZIP 56721 is relatively affordable given the median home value of $283,968. However, the lack of available data on days on market (DOM) and the low price-cut share of 0.3% suggest that homes are selling quickly without significant price reductions. This indicates a competitive market where landlords might need to act swiftly to secure properties, but the overall cost remains within an acceptable range for investment.
Tenant demand in ZIP 56721 is moderate. With a total population of 10,679, the renter share is 27.8%. This translates to approximately 2,967 renters in the area, providing a reasonable pool of potential tenants. However, the relatively low renter share compared to other areas could mean a smaller target audience for landlords seeking to maximize occupancy rates.
Overall, while the rent math is unfavorable due to the disparity between FMR and market rents, the acquisition cost is reasonable. Tenant demand exists but is limited by the modest renter share. Landlords must carefully consider their ability to operate profitably under these conditions before investing in ZIP 56721.
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.