Location: Redwood County, MN | Metro: Brown County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,570 |
| 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 ZIP code 56083 is characterized by a small, tight-knit community with a total population of 741 residents. Only 12.4% of these residents are renters, indicating a primarily owner-occupied area. The median household income in this ZIP code stands at $69,167, suggesting a middle-class neighborhood where residents have stable financial footing. The median home value of $208,675 further supports this notion, reflecting modest property values relative to larger metropolitan areas.
From an investment perspective, the rental market in ZIP 56083 presents a unique opportunity. The Fair Market Rent (FMR), which is set by HUD for metro areas, is projected to be $1,090 for fiscal year 2026. However, the actual market rent, according to Census ACS data, is significantly lower at $438 per month. This substantial gap between the FMR and the market rent suggests that there is considerable potential for landlords and small-portfolio investors to benefit from the government subsidy program.
Given the characteristics of ZIP 56083, it is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the area's low rental demand and stable population mean that managing Section 8 properties here would likely require minimal effort and could provide steady, reliable returns. On the other hand, value-add buyers might find opportunities to renovate and improve properties, thereby increasing their rental value closer to the FMR without losing tenants due to the significant subsidy.
In conclusion, ZIP 56083 offers a balanced environment for Section 8 investments, with manageable tenant populations and a clear economic advantage over the local market rents. Both types of investors can find success here, whether through passive management or active property enhancement strategies.
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.