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 | $850 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,470 | $247,402 | 0.59% | F |
| 4BR | $1,770 | $316,338 | 0.56% | F |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 56723 for Section 8 properties should follow this decision tree:
1) Does FMR ($910) cover debt service on a $272,479 property?
If the annual debt service on a property valued at $272,479 is less than or equal to $10,920 (12 months * $910), then the answer is yes. The Fair Market Rent (FMR) of $910 per month can clear the debt service. However, if the debt service exceeds this amount, the answer is no. The FMR will not be sufficient to cover the monthly mortgage payments.
2) Is the market rent ($958) above, at, or below the FMR?
The market rent of $958 is slightly above the FMR of $910. This means that landlords can potentially charge a higher rent to non-Section 8 tenants, but they must be prepared to accept a lower rent for those participating in the Section 8 program. Landlords should consider their tenant mix and whether they are willing to have some units rented under the Section 8 program at the lower rate.
3) Are 15.8% renters plus N/A-day days on market enough demand?
The percentage of renters in ZIP 56723 is 15.8%, which suggests a moderate demand for rental housing. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties are being rented. If the DOM is low, indicating quick rentals, then the demand is likely strong enough. If the DOM is high, it could mean that there is insufficient demand for rental properties in this area.
It depends: If the answers to the first two questions are positive, and the DOM indicates that properties are renting quickly, then there is a strong case for buying in ZIP 56723. The FMR covers the debt service, market rents are slightly higher, and there is sufficient demand from renters. However, if the DOM is high, despite the favorable FMR and market rent, the answer is no. There is not enough demand to justify the investment.
No: If the FMR does not cover the debt service or if the market rent is significantly below the FMR, then the answer is no. It is not advisable to invest in ZIP 56723 under these conditions. Landlords need to ensure that the rent received will at least cover the cost of owning the property.
Yes: If the FMR comfortably covers the debt service, market rent is above FMR, and the DOM indicates strong rental demand, then the answer is yes. ZIP 56723 presents a good opportunity for landlords and small-portfolio investors interested in Section 8 properties. The combination of adequate FMR, competitive market rents, and a moderate number of renters ensures a stable investment environment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.