Location: Swift County, MN | Metro: Stevens County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
The ZIP code 56207 presents several challenges and opportunities for landlords and small-portfolio investors. Here are some common objections raised by skeptical investors, followed by answers based on the available data.
Objection 1: Will the Fair Market Rent (FMR) of $970 (metro FY 2026) cover the mortgage on a home in this area?
The median home value in ZIP 56207 is $106,000 as of May 2026, according to recent data. With a median home value this low, it's possible to secure a mortgage that aligns with the FMR. However, specific mortgage details depend on factors such as interest rates and down payment size. To ensure the FMR covers mortgage costs, consider properties with a lower purchase price or seek a mortgage with favorable terms.
Objection 2: Is there enough renter demand at 24.2%?
The rental demand percentage of 24.2% indicates a relatively modest demand compared to higher percentages. Yet, with a significant portion of homes having more than 50% equity (82.73%) and 86 fully paid-off homes, there are ample opportunities for investment. While the demand isn't exceptionally high, the availability of affordable homes could attract renters looking for cost-effective living options. Additionally, the nearby markets might offer complementary demand, enhancing the potential for rental income.
Objection 3: Will vouchers keep pace with market rents?
The FMR of $970 suggests a baseline for voucher coverage, but whether this keeps pace with actual market rents depends on the local rental market dynamics. With limited recent sales data, it's challenging to gauge exact market rent trends. However, given the median home value and the presence of fully paid-off homes, it's likely that rents in the area remain relatively stable and affordable. Landlords should monitor local rental listings and government updates on voucher adjustments to ensure they stay competitive.
In conclusion, while ZIP 56207 presents certain challenges, the combination of low median home values and a substantial number of high equity and fully paid-off homes makes it a viable investment opportunity for those willing to conduct thorough due diligence. The key lies in understanding the local market and adapting strategies accordingly.
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.