Location: Grand Forks, ND | Metro: Grand Forks, ND-MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,370 |
| 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)
To classify ZIP code 56722 on the axes of yield and stability, we must consider several factors including the Fair Market Rent (FMR), home values, renter population, and average income levels.
The FMR for ZIP 56722 in fiscal year 2024 is set at $910. This figure represents the maximum amount that a landlord can charge for a rental property under the Section 8 program. Given that the median home value is $259,454, the FMR suggests a relatively low yield when compared to potential mortgage payments or property taxes a landlord might incur. However, the FMR does provide a guaranteed minimum rent, which can be advantageous for securing steady cash flow.
The stability of the area is indicated by the low percentage of renters at 1.4%, suggesting that homeownership is prevalent in this ZIP code. While this might seem positive for stability, it also implies a smaller pool of potential Section 8 tenants. The average household income of $94,375 is a strong indicator of financial stability among residents, but without knowing the daily Days on Market (DOM) figure for rentals, it's challenging to fully assess the speed at which properties might be rented out.
Based on these figures, ZIP 56722 appears to be a steady-cashflow zone rather than a high-yield/low-stability market. The guaranteed rent through the FMR ensures a predictable income stream, which is beneficial for landlords looking for consistent returns. However, the low yield relative to the median home value suggests that this area is not particularly lucrative for speculative investments or quick flips. The higher average income supports the idea of a stable tenant base, although the limited data on rental demand means landlords should prepare for potentially longer vacancy periods.
In summary, for landlords and small-portfolio investors, ZIP 56722 offers a reliable, if modest, cash flow opportunity. The financial guarantees of the Section 8 program coupled with the stable income levels of the area make it suitable for those prioritizing security over high returns.
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.