Location: Fargo, ND | Metro: Fargo, ND-MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
U.S. Census Bureau data (2024)
The ZIP code 58002 presents several challenges for landlords considering participation in the Section 8 program. Tenant turnover is a significant concern, as the Fair Market Rent (FMR) for the area is set at $940 for FY 2024, which might not align with local market rents. This misalignment can lead to higher turnover rates if tenants find better rental deals outside the program. Additionally, vacancy exposure is a critical issue due to the unknown number of days on market (DOM), indicating that it's difficult to predict how long a property might remain vacant between tenancies. The lack of specific data on typical home values and median incomes further complicates the analysis, making it hard to assess the financial health of potential tenants and their ability to cover maintenance costs, thus increasing the risk of deferred maintenance.
Despite these risks, the ZIP code has a 0.0% renter share, which typically suggests a high concentration of renters. In most cases, a high renter density would correlate with increased demand for housing vouchers, potentially stabilizing occupancy rates. However, the unique combination of low renter share and the other identified risks makes it challenging to rely on this usual indicator.
Verdict: High risk for a first-time Section 8 landlord.
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.