Section 8 Fair Market Rent (FMR) for ZIP 58201 - 2027

Investment Score for ZIP 58201

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$890
1 Bedroom	$900
2 Bedrooms	$1,110
3 Bedrooms	$1,540
4 Bedrooms	$1,860
5 Bedrooms	$2,158
6 Bedrooms	$2,417
7 Bedrooms	$2,610
8 Bedrooms	$2,741

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$900	$164,311	0.55%	F
2BR	$1,110	$228,981	0.48%	F
3BR	$1,540	$295,433	0.52%	F
4BR	$1,860	$379,417	0.49%	F
5BR	$2,158	$518,733	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 58201 (Grand Forks, ND) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 58201 is set by HUD for 2026. For a two-bedroom unit, the FMR is $1,180, which represents approximately 20.8% of the median household income of $68,143. This suggests that the rent for a two-bedroom unit is relatively affordable for the average resident. However, the actual rental prices in the market can be significantly higher. According to Zillow, the median price for a two-bedroom rental unit is $220,273, which translates to a monthly rent of around $1,835 based on a typical mortgage payment structure. The price-to-FMR ratio is 15.6x, indicating that actual rents are far above the FMR. This means that Section 8 voucher holders face significant constraints in finding suitable housing within their budget. They would likely have to look for units that are either below the FMR or in areas where landlords are willing to accept the voucher despite the lower rent compared to market rates. #### Affordability & Renter Profile ZIP code 58201 has a population of 42,373, with 50.3% of residents being renters. This high percentage of renters indicates a strong demand for rental properties in the area. The occupancy rate of 95.3% further supports the notion that the rental market is tight, with very few vacant units available. Given the median household income of $68,143, the affordability of housing is a critical issue for many residents. The fact that 20.8% of the median income goes towards a two-bedroom unit at FMR suggests that a significant portion of the population may struggle to find affordable housing without assistance. This makes the Section 8 program particularly important for ensuring that low-income families can access decent housing. #### Investor Angle From an investor perspective, the ZIP code 58201 presents a challenging environment due to the high price-to-FMR ratio. The median price for a two-bedroom unit is $220,273, which implies a monthly mortgage payment of about $1,835 based on typical financing terms. Given that the FMR for a two-bedroom unit is only $1,180, it is clear that landlords who rely solely on FMR will struggle to cover their mortgage payments, let alone other expenses such as maintenance and property taxes. Therefore, the ZIP code is unlikely to be cash-flow positive for investors who focus exclusively on Section 8 vouchers. However, there are still opportunities for investors who can navigate the complexities of the market. For instance, if an investor can secure a lower purchase price or has a different financing strategy, they might be able to achieve positive cash flow. Additionally, the tight rental market and high occupancy rate suggest that there is strong demand for rental properties, which could provide some stability even if the properties are not occupied by Section 8 tenants. #### Investment Grade Given the high price-to-FMR ratio and the tight rental market, the investment grade for this ZIP code is moderate to low for Section 8-focused investors. While there is a strong demand for rental properties, the financial constraints imposed by the FMR make it difficult to generate positive cash flow. Investors should carefully consider their financing options and the potential for non-Section 8 tenants before making any investment decisions. #### Specific Actionable Insights 1. **Target Lower-Priced Properties**: Investors should focus on acquiring properties that are priced below the median market value of $220,273. For example, a two-bedroom unit priced at $180,000 would translate to a monthly mortgage payment of approximately $1,300, which is closer to the FMR of $1,180. This would help mitigate the risk of negative cash flow. 2. **Consider Mixed Tenancy Strategies**: Given the high price-to-FMR ratio, landlords might want to consider a mixed tenancy approach where some units are rented to Section 8 voucher holders and others to market-rate tenants. This could help balance out the financial impact and ensure overall profitability. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 58201 is to **skip** this market unless they can secure properties at significantly lower prices or have alternative financing strategies. The high price-to-FMR ratio and tight rental market make it challenging to achieve positive cash flow strictly through Section 8 vouchers. However, for those willing to explore mixed tenancy or other investment approaches, there may still be opportunities to invest profitably in this area.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.