Location: Grant 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 median income in ZIP code 58563 stands at $78,214, indicating a relatively stable economic base. However, when considering the market rate for rent, which is $857 according to Census ACS data, it becomes evident that affordability could be a concern for many households. This figure is just slightly below the Fair Market Rent (FMR) standard of $860 set for voucher payments in ZIP 58563 for fiscal year 2024.
The tight alignment between the market rate and the FMR suggests that there is little margin for households to choose between paying out-of-pocket or using a voucher. Given that only 13.4% of the 1,961 residents are renters, competition among potential tenants is likely to be low. Landlords should expect a smaller pool of applicants, which means that any vacancy could lead to prolonged periods without rental income.
The affordability gap, where the median income is close to but still below the threshold required to comfortably cover the rent, impacts the competition for rental properties. Tenants who might otherwise pay cash may opt for the stability and support offered by housing vouchers, especially if they find the market rate challenging to meet consistently.
For landlords, the takeaway is clear: focusing on voucher tenants can provide a steady stream of income, albeit at rates closely tied to the FMR. While cash-paying tenants might offer slightly higher rents, the reliability of voucher payments, combined with the limited number of renters, makes them a valuable segment of the market. Landlords should prepare to balance the benefits of guaranteed income from voucher programs against the potential for higher rents from cash-paying tenants.
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.