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)
In ZIP code 58005, the economics of Section 8 housing can be clearly understood by examining the SAFMR (Small Area Fair Market Rent) and comparing it to the local rental market. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this specific ZIP code is set at $1160. This figure represents the maximum amount that a Section 8 voucher will cover for rent in this area.
The SAFMR is designed to reflect the local rental market conditions, but in this case, the local market rent data is unavailable. Despite this lack of information, landlords can still rely on the SAFMR to gauge the financial viability of renting to tenants with Section 8 vouchers.
When a tenant uses a Section 8 voucher, they are responsible for paying a portion of the rent themselves, typically around 30% of their income. The remainder is paid by the government. Additionally, there are utility allowances that vary based on the size of the unit and the number of occupants. For a two-bedroom apartment, the utility allowance usually ranges from $300 to $400 annually, which is split into monthly payments.
To illustrate, let's assume a tenant's portion of the rent is $348, which is 30% of a typical income for a household eligible for Section 8 assistance. The government would then pay the difference between the tenant's portion and the SAFMR. In this scenario, the government payment would be $1160 - $348 = $812 per month, before any utility allowances are considered.
If we factor in an average utility allowance of $35 per month (calculated from the annual range), the total reimbursement received by the landlord each month would be $812 + $35 = $847. This means that the landlord receives $847 from the government and $348 from the tenant, totaling $1195 per month for a two-bedroom unit.
Given that the SAFMR is $1160, the typical reimbursement gap or surplus for a landlord renting a two-bedroom apartment under the Section 8 program in ZIP 58005 is $35 per month. This surplus indicates that landlords receive slightly more than the SAFMR, which can help offset any unforeseen costs or maintenance expenses.
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.