Location: Grand Forks, ND | Metro: Grand Forks, ND-MN MSA
| 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 |
U.S. Census Bureau data (2024)
To integrate ZIP 58278 into a Section 8 portfolio strategy, it's essential to understand its financial metrics and market dynamics. This ZIP code, part of the Grand Forks, ND-MN MSA, stands out as a potential cash-flow anchor.
The Federal Market Rent (FMR) for ZIP 58278 in fiscal year 2024 is set at $910. This figure represents the maximum amount that a landlord can charge for a Section 8 rental unit. In comparison, the current market rent for similar units is $817. The difference between these two figures, a spread of $93, provides a clear advantage to landlords participating in the Section 8 program. This positive spread ensures that landlords receive a higher rent than the market rate, which is beneficial for maintaining steady cash flow.
Furthermore, the median home value in ZIP 58278 is $365,459. While this figure is significant, it does not directly impact the Section 8 strategy since the program is designed for renters, not homeowners. However, it does provide context on the overall economic health and property values of the area, which can indirectly affect the desirability of renting versus owning.
The ZIP code does not present itself as an appreciation play, given that there is no specific percentage for price-cut share or days on the market (DOM) for rental properties. These metrics would typically indicate whether properties in the area are experiencing growth or if they are becoming harder to sell, but their absence here suggests that appreciation is not a primary driver in this market segment.
ZIP 58278 also serves as a diversifier due to its 5.5% renter share and median income of $111,250. The relatively low renter share means that the majority of residents in this ZIP code own their homes, which can stabilize the local economy and reduce the volatility associated with high renter shares. Additionally, the median income is robust, indicating that residents have the financial capability to meet their obligations, including those related to Section 8 housing assistance.
In summary, ZIP 58278 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The positive spread between the FMR and market rent ensures landlords receive above-market rates, providing a reliable source of income. This makes it an ideal choice for landlords and small-portfolio investors looking to secure consistent cash flow from their rental investments.
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.