Location: Nelson County, ND | Metro: Grand Forks, ND-MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 58266 in Nelson County, ND, reveals a challenging environment for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $910 per month for FY 2024, which is the benchmark for voucher tenants. However, the lack of available market rent data makes it difficult to directly compare the FMR to what tenants might be willing to pay in the open market.
Given the absence of market rent data, it's reasonable to conclude that voucher tenants will cashflow at the FMR rate, but likely only with premium units. This suggests that landlords should focus on properties that offer additional amenities or are in particularly desirable locations to attract tenants willing to pay closer to the FMR without requiring significant concessions.
The median home value in ZIP 58266 is also not available, which means deriving an accurate rent-to-price ratio is not possible. Nevertheless, the scarcity of data on home values implies that the housing market in this area may not be robust, potentially affecting long-term investment strategies focused on appreciation. Investors should prioritize properties that can generate steady cashflow rather than relying on significant property value increases.
The median Days on Market (DOM) and the percentage of homes that required price cuts are both unavailable, indicating a lack of recent sales activity or a stable housing market where price negotiations are minimal. This stability could be beneficial for rental property owners, as it suggests that the local real estate market is not experiencing rapid fluctuations that could impact rental demand or pricing.
In conclusion, the strongest investor angle in ZIP 58266 is likely cashflow, given the current HUD FMR and the potential challenges in finding market rent data. Focus on premium units that can command closer to the FMR, ensuring a steady income stream in a market with limited information on appreciation or volatility.
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.