Location: Mercer County, ND | Metro: Bismarck, ND MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,480 |
| 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 economics of Section 8 in ZIP code 58530 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment is set at $860 for the fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, meaning it reflects the rental market conditions unique to 58530.
Local market rents, according to the Census ACS data, stand at $756 for a similar two-bedroom unit. This indicates that the SAFMR is higher than the average market rent, which can be advantageous for landlords participating in the program.
A Section 8 voucher works by covering the difference between the tenant's portion and the total rent. The tenant is expected to pay approximately 30% of their income towards rent. For simplicity, let's assume the tenant's portion is $258, which is roughly 30% of the SAFMR. This leaves the remaining 70% to be covered by the housing authority, up to the SAFMR limit.
In addition to the base rent, there are utility allowances that must be considered. These allowances vary but typically add a few hundred dollars to the total reimbursement. If we estimate an additional $100 for utilities, the total reimbursement from the housing authority would be $358 per month ($258 base rent + $100 utilities).
This means that if you charge the SAFMR rate of $860, the housing authority will cover $358, leaving you responsible for collecting the remaining $502 directly from the tenant. However, since the local market rent is lower at $756, the actual reimbursement might be slightly less, depending on the specific terms of your lease agreement with the housing authority.
To illustrate, if you charge $756 for a two-bedroom unit, the housing authority would still cover $358 based on the voucher payment structure. This leaves the tenant paying $398 ($756 - $358), which is more than the assumed 30% contribution ($258). Therefore, you would receive the full market rent of $756, with the housing authority contributing $358.
The typical reimbursement gap or surplus in ZIP 58530 for a two-bedroom apartment is a surplus. Landlords who participate in the Section 8 program and charge the local market rate of $756 will receive more than the tenant's 30% contribution, ensuring they do not lose out financially.
In summary, the SAFMR of $860 sets the maximum rent you can charge for a two-bedroom unit under the Section 8 program in ZIP 58530. With local market rents at $756, landlords can expect a surplus when they charge the market rate, as the housing authority's reimbursement will exceed the tenant's direct payment.
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.