Location: Fargo, ND | Metro: Fargo, ND-MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $2,070 |
| 5 Bedrooms | $2,401 |
| 6 Bedrooms | $2,689 |
| 7 Bedrooms | $2,904 |
| 8 Bedrooms | $3,049 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 58042 in fiscal year 2024 is set at $1420. This figure represents the payment standard used by the U.S. Department of Housing and Urban Development (HUD) for determining the maximum amount of rental assistance that can be paid to landlords under the Section 8 program. It is important to note that this is not the actual rent you will charge your tenants; rather, it is the cap on what the government will pay towards the rent.
Unfortunately, the specific local market rent for ZIP 58042 is not available. However, you can use the FMR as a guideline to understand the typical rental prices in the area. If the local market rents are higher than the FMR, you may need to adjust your expectations for additional tenant contributions beyond the Section 8 subsidy.
The demand for Section 8 rentals in ZIP 58042 can be estimated using the renter share, which is 1.9%. This indicates that a small but steady portion of renters in the area are likely to seek out housing vouchers. While this percentage might seem low, it translates into a significant number of potential tenants given the size of the local rental market.
To put things into perspective, the average acquisition cost for a rental property in this ZIP code is $372,228. This figure should help you assess whether the potential income from a Section 8 rental aligns with your investment goals. With the FMR at $1420, you must ensure that your total rental income, including any tenant contribution towards the rent, covers your mortgage payments, maintenance costs, and other expenses associated with owning a rental property.
Before proceeding with your first Section 8 rental, you must verify that your property meets HUD's Housing Quality Standards (HQS). These standards are designed to ensure that all units leased under the Section 8 program are safe, decent, and sanitary. Failure to meet these standards can result in a denial of tenancy, so it is crucial to conduct a thorough inspection and make any necessary repairs to avoid delays or complications.
In summary, while the FMR provides a benchmark for rental subsidies, you should consider the local market conditions and ensure your property is HQS compliant to secure a stable and profitable investment in Section 8 rentals.
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.