Location: Grand Forks, ND | Metro: Grand Forks, ND-MN MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $820 | $140,553 | 0.58% | F |
| 2BR | $1,010 | $194,029 | 0.52% | F |
| 3BR | $1,410 | $237,163 | 0.59% | F |
| 4BR | $1,700 | $277,802 | 0.61% | D |
| 5BR | $1,972 | $294,681 | 0.67% | D |
U.S. Census Bureau data (2024)
Skeptical investors often have valid concerns when considering rental properties in ZIP 58203, Grand Forks, ND. Here we address some of those key objections with the available data.
Objection 1: Will Fair Market Rent (FMR) of $910 cover the mortgage on a $235,038 home?
The short answer is that it will depend on the interest rate and loan terms. Based on the data, a home priced at $235,038 in Grand Forks would require a monthly mortgage payment that varies significantly with the interest rate. For instance, at a 4% interest rate over 30 years, the monthly principal and interest payment would be approximately $1,130. At a higher rate, such as 6%, the payment would increase to around $1,400. Therefore, an FMR of $910 would not sufficiently cover these mortgage payments without additional income sources or equity. However, it's important to note that property taxes and insurance also factor into total housing costs, which can be managed through careful financial planning.
Objection 2: Is there enough renter demand at 55.2%?
The percentage of households renting at 55.2% suggests a robust demand for rental properties in Grand Forks. This figure indicates that more than half of the residents prefer or need to rent, which is a positive sign for potential investors. Additionally, the city's demographic trends, including a growing student population and a steady influx of young professionals, support sustained demand. However, the data does not provide specific figures on the vacancy rates or competition among rental properties, which would offer a clearer picture of the supply-demand balance.
Objection 3: Will vouchers keep pace with market rents of $1,209?
Vouchers can be a reliable source of income for landlords, but the data shows that the average voucher amount may not fully cover the market rent of $1,209. The Fair Market Rent set by HUD for ZIP 58203 is lower at $910, which means that landlords might face a shortfall if they rely solely on vouchers. To mitigate this risk, investors should consider the availability of additional subsidies or the willingness of tenants to pay the difference between the voucher amount and market rent. Furthermore, landlords can explore ways to maximize their returns through ancillary services or strategic property management practices.
In conclusion, while the data provides valuable insights into the rental market in Grand Forks, ND, it is essential to conduct further research on local economic conditions, tenant preferences, and specific property details to make informed investment decisions. The numbers indicate both opportunities and challenges, requiring a balanced approach to ensure profitability and sustainability.
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.