Section 8 Fair Market Rent (FMR) for ZIP 56744 - 2027

Location: Walsh County, ND | Metro: Grand Forks, ND-MN MSA

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$920
1 Bedroom	$930
2 Bedrooms	$1,160
3 Bedrooms	$1,580
4 Bedrooms	$1,940
5 Bedrooms	$2,250
6 Bedrooms	$2,520
7 Bedrooms	$2,722
8 Bedrooms	$2,858

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

571

Median Household Income

$81,750

Housing Units

277

Renter Percentage

17.3%

Occupancy Rate

89.9%

Renter Occupied

The Section 8 housing analysis for ZIP code 56744 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $910, while the Census American Community Survey (ACS) indicates that the market rent in this area is only $446. This results in a gap of $464, or approximately 51%, between the two figures.

Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to achieve higher yields. By participating in the Section 8 program, they can receive rental payments that are closer to the FMR, which is significantly above the local market rate. This means that even though the market rent is lower, the government subsidy will cover the difference, making it financially advantageous to house voucher tenants.

The ZIP code 56744 has a rental population of 17.3% of all households, indicating a moderate demand for rental properties. With a median home value of $175,040 and a median household income of $81,750, there is a clear affordability gap for many residents. The Section 8 program helps bridge this gap by providing financial assistance to low-income families, ensuring that they can afford decent housing despite their income level.

In this context, landlords should consider the following:

Housing Voucher Tenants Below Open-Market Rates: Since the FMR is higher than the market rent, landlords can expect to receive payments that are above what they might charge to non-voucher tenants. This makes the ZIP code an attractive location for those looking to maximize their investment returns.
Stability and Reliability: Tenants with Section 8 vouchers typically have stable sources of income and are committed to maintaining their housing status. This reduces the risk of vacancy and delinquency, which can be common concerns for landlords in areas with high rental turnover.
Long-Term Investment Strategy: The current disparity between FMR and market rent suggests a long-term opportunity for landlords who are willing to work with the Section 8 program. It allows them to offer affordable housing options while still achieving a solid return on their investment.

To summarize, the gap between the FMR and market rent in ZIP code 56744 presents a unique yield opportunity for landlords and small-portfolio investors. By aligning their rental offerings with the Section 8 program, they can benefit from higher rental income compared to the open-market rates, while also contributing to the community's need for affordable housing solutions.

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.