Location: Traill County, ND | Metro: Grand Forks, ND-MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $870 |
| 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)
A skeptical investor considering ZIP 58240 might raise several concerns regarding the feasibility of investing in the area. Here are the most pressing objections, along with an analysis based on available data.
Objection 1: Will FMR $910 (zip FY 2024) cover the mortgage on a $210,971 home?
The Fair Market Rent (FMR) for ZIP 58240 in fiscal year 2024 is set at $910 per month. To determine if this will sufficiently cover the mortgage, we must consider the typical mortgage payment for a home valued at $210,971. Assuming a standard 30-year fixed-rate mortgage with an interest rate of around 5%, the monthly mortgage payment would be approximately $1,100. This means that the FMR of $910 falls short by about $190 per month. However, it's important to note that this calculation does not account for potential rental income from additional units or the possibility of renting out a portion of the property. Furthermore, property taxes and insurance should also be factored into the total cost.
Objection 2: Is there enough renter demand at 15.8%?
The percentage of renters in ZIP 58240 stands at 15.8%. This figure suggests a relatively low demand for rental properties compared to areas with higher percentages of renters. However, it's crucial to understand that this statistic alone does not provide a complete picture of the rental market. The actual number of renters and the vacancy rates are key indicators of demand. Additionally, the local economy, employment opportunities, and population growth trends can influence the demand for rentals. Without specific data on these factors, it's challenging to definitively conclude whether the demand is sufficient.
Objection 3: Will vouchers keep pace with $770 market rents?
The market rent for ZIP 58240 is currently at $770 per month. The question of whether housing vouchers will keep up with this market rate is critical for landlords participating in the Section 8 program. According to HUD guidelines, voucher amounts are adjusted annually based on the FMR. Given that the FMR for the area is slightly higher at $910, landlords can expect that voucher payments will generally cover the $770 market rent, leaving some room for profit. However, it's important to monitor any changes in the FMR and market rent to ensure continued alignment. In some cases, landlords may need to adjust their rent or seek other sources of income to maintain profitability.
In conclusion, while the data provides insight into the financial viability of investing in ZIP 58240 through the lens of FMR, rental demand, and voucher coverage, it's essential to continuously assess the local market conditions and economic trends to make informed decisions. The FMR and market rents indicate that rental income alone may not fully cover mortgage expenses, but other factors such as additional units or local economic growth could mitigate this risk.
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.