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)
ZIP 58011, located in Fargo, ND-MN MSA metro, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) and the actual market rent for the area. For fiscal year 2024, the FMR for ZIP 58011 is set at $910, while the median market rent stands at $2,083. This gap ensures that landlords can maintain steady and predictable cash flows from Section 8 tenants.
The median home value in ZIP 58011 is $239,137, which is relatively stable compared to the previous year. Although the average home value increased by 5.0%, the median home value only saw a slight decrease of -0.8%. These figures indicate that the real estate market in ZIP 58011 is mature and less volatile, making it an ideal location for anchoring a portfolio with properties that provide reliable income streams.
The median income in ZIP 58011 is $99,853, which does not suggest strong potential for property appreciation due to high-income residents. Instead, it supports the idea that this ZIP code serves as a cash-flow anchor, where the primary goal is to generate consistent returns rather than focusing on capital gains. The affordability ratio of 2.4x, calculated by dividing the median household income by the median home value, further confirms that there is sufficient disposable income among residents to support stable rental markets.
In summary, ZIP 58011 should be considered a cash-flow anchor in a Section 8 portfolio strategy due to the substantial difference between the FMR and market rents, coupled with the relatively stable median home values and median incomes. This strategic positioning will ensure that landlords and small-portfolio investors can rely on steady cash flows from their properties in this area.
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.