Location: Traill County, ND | Metro: Grand Forks, ND-MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,210 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 58275 reveals a significant disparity between the Fair Market Rent (FMR) and the actual market rent, which has direct implications for landlords and small-portfolio investors. The FMR for ZIP 58275 in fiscal year 2024 is set at $910, whereas the Census American Community Survey (ACS) reports the market rent at $1,375. This creates a gap of $465 per month, representing a 51.1% difference between what voucher holders can pay and the open-market rental price.
Given that the FMR is less than the market rent, landlords who accept housing vouchers must be prepared to absorb the difference between these two figures. Accepting voucher tenants means setting rents at levels below the open-market rate, which could impact profitability. However, the decision to accept vouchers should also consider the stability and reliability of rental income from voucher tenants, who are guaranteed payment by the government.
In the broader context of ZIP 58275, where only 16.2% of residents are renters, the competition for rental properties is relatively low. This could mean that landlords who do not accept vouchers might find it challenging to fill their units. Additionally, with a median home value of $236,706 and a median household income of $105,385, the area suggests a higher-end residential market, where the majority of residents can afford homes rather than rentals. Therefore, landlords in this ZIP code might find accepting Section 8 vouchers a strategic move to ensure consistent occupancy and income, despite the lower rental rates compared to the market.
To summarize, while the FMR is significantly below the market rent, making it a less lucrative option for landlords, the benefits of stable tenancy and reduced vacancy rates may outweigh the financial shortfall. Landlords should carefully weigh these factors 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.