Location: Grand Forks, ND | Metro: Grand Forks, ND-MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,110 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
U.S. Census Bureau data (2024)
When evaluating whether to invest in ZIP code 58202 for Section 8 properties, follow these steps:
Step 1: Debt Service Coverage Ratio (DSCR)
The Fair Market Rent (FMR) for ZIP 58202 in fiscal year 2024 is set at $930. This figure must cover the debt service on any property you're considering. If the DSCR is less than 1 based on this FMR, then the answer is No. You need a DSCR greater than 1 to ensure that the rental income will fully cover the mortgage payments and other expenses.
Step 2: Market Rent Comparison
The average market rent in ZIP 58202 is $1,346 according to the Census ACS. Compare this to the FMR of $930. Since market rent is higher than the FMR, this indicates that Section 8 tenants would pay less than what the market can bear. Therefore, if your goal is to maximize rental income, the answer is No. However, if you are looking for stable, government-backed rental income, proceed to the next step.
Step 3: Demand Analysis
In ZIP 58202, 94.4% of residents are renters. This high percentage suggests strong demand for rental properties. Additionally, the days on market (DOM) for rental listings is not specified, but if it's low, this further supports robust demand. Given the high percentage of renters, the answer is Yes, there is sufficient demand. However, without specific DOM data, this conclusion is based solely on the high rental rate.
To summarize, if the FMR of $930 does not clear debt service, do not invest. If market rent is significantly higher at $1,346, consider the lower income stability versus potential for higher rents. With 94.4% of residents being renters, demand is strong, making ZIP 58202 a viable option for Section 8 investments. However, always verify the DOM data to confirm the speed at which units are rented.
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.