Location: Walsh County, ND | Metro: Grand Forks, ND-MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 58261 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $910, whereas the Census American Community Survey (ACS) indicates that the market rent is $750. This means there is a $160 difference, or approximately a 21.3% premium, that landlords can charge through Section 8 vouchers compared to the open-market rate.
The disparity between the FMR and the market rent makes this area a compelling yield play for landlords who accept Section 8 tenants. By renting at the FMR level, landlords can secure a higher rental income than what the local market offers. This financial advantage is particularly notable given the context of 58261, where only 6.2% of residents are renters, suggesting a limited supply of rental properties and potentially strong demand from voucher holders.
The median income in the ZIP code is $78,864, which provides insight into the economic profile of the area. Despite the lack of data on median home values, it is clear that the income levels support the potential for higher rents through Section 8, without necessarily pricing out local residents who might struggle to afford the premium.
However, landlords must consider the implications of accepting Section 8 tenants at rates below the open-market value. While the $160 premium represents a significant boost over the $750 market rent, it still falls short of the FMR. Landlords should weigh the benefits of guaranteed payment and stable tenancy against the lower overall rent when deciding whether to participate in the Section 8 program.
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.