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 58004 presents several challenges for landlords considering participation in the Section 8 program. Tenant turnover is a significant concern, with the Fair Market Rent (FMR) set at $940 for FY 2024, which may not align with local market rents. This misalignment can lead to higher turnover rates as tenants seek more affordable options or move when better opportunities arise. Additionally, vacancy exposure is a critical issue due to the lack of data on days on market (DOM), indicating potential instability in rental demand.
The area also faces deferred maintenance exposure. With a median income of $72,250 and an unspecified typical home value, landlords might find it difficult to justify higher maintenance costs to tenants who are already budget-constrained. The financial strain could result in properties deteriorating faster than anticipated, leading to increased repair costs and potential compliance issues with housing quality standards.
Despite these risks, the ZIP code 58004 has a high renter density, with 13.6% of residents being renters. High renter density typically correlates with a greater demand for housing vouchers, which can provide a steady stream of tenants and reduce the risk of vacancies. This factor, however, must be balanced against the other challenges present in the area.
Verdict: Moderate 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.