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<br />Over half the conventional market-rate units were built during the 1980s and only <br />12% were built since 2000. Compared to The Danter Company's national <br />database, this is a moderate share of newer housing developments. Since 2001, the <br />area has experienced an average release of 415.4 units each year. <br /> <br />The distribution of rents in market-rate apartments is skewed, with peak rent levels <br />outside the typical market bell curve. Compared to other markets in The Danter <br />Company database, the comparability (or quality, e.g. amenities) rating of <br />conventional apartments is 14 points. This is lower than the typical median of 18.5 <br />points in The Danter Company's national database. <br /> <br />These two factors mean that the rental housing market is "out of balance". An <br />extremely strong demand for housing enables lower-quality rental apartments to <br />command higher prices. <br /> <br />In 14 (704 units) identified Tax Credit-financed developments12 the vacancy rate is <br />3.4%. This indicates an undersupply of this type of apartment. Median rents <br />ranged from $445/month for a one-bedroom unit to $614/month for a four- <br />bedroom unit. All but one or two of the Tax Credit-financed developments are <br />located in Fargo and West Fargo. The program is administered by the North <br />Dakota Housing Finance Agency and the Minnesota Housing Finance Agency. <br /> <br />Fifteen government-subsidized developments were identified with 1,321 units. <br />Eight of these are restricted to elderly tenants. The overall vacancy rate was 1.3%. <br />This indicates there is an extremely short supply of this housing. These include <br />600 public housing units in Fargo and 173 public housing units in Moorhead. The <br />remainder are privately owned developments that received some federal subsidy. <br /> <br />Lastly, the Fargo and Moorhead public housing authorities administer Section 8 <br />Rental Assistance programs that provide 1,506 vouchers to tenants Fargo and <br />Moorhead who find housing in the private market. Some of these tenants may rent <br />apartments in Tax Credit-financed developments. <br /> <br />The rent levels in public housing and government-subsidized apartments are aimed <br />at households earning less than 50% of the HUD-defined median income. The <br /> <br />12 Tax Credit rental developments stem from a federal tax credit incentive program for investors in real estate, It is <br />not a subsidy program, but does require apartment complexes to have a certain percentage of renters who earn less <br />than either 50% or 60% of IRS-defined median income, usually the same as the HUD-defined median income. <br /> <br />II <br /> <br />Linda S, Donnell\'. A.LCI'. <br /> <br />A ugllst 2006 <br />