Location: Traverse County, MN | Metro: Big Stone County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56211 within the Traverse County, MN metro area reveals several key insights for landlords and small-portfolio investors.
The rent math does not favor landlords. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,040, while the current market rent based on Census ACS data stands at only $775. This discrepancy means that landlords might struggle to charge rents that align with the FMR, potentially leading to lower profit margins.
Acquisition costs are relatively high in this ZIP code. With a median home value of $220,509, purchasing properties can be expensive. However, the lack of data on days on market (DOM) and the percentage of homes sold with price cuts suggests that the local real estate market may not be providing enough recent transactions to accurately gauge the affordability of property acquisitions. Further investigation into individual listings and sales trends would be necessary to make a definitive assessment.
Tenant demand is modest given the limited population size of 484 individuals and a renter share of 22.9%. This indicates that roughly 111 residents are likely seeking rental housing. While this number is small, it could still support a niche rental market, especially if the area caters to specific demographics such as seasonal workers or retirees.
In summary, ZIP 56211 presents challenges in terms of rent pricing and property acquisition costs, with a modest tenant demand. Landlords should carefully consider these factors before investing in the area, focusing on cost-effective acquisitions and setting realistic rental expectations. The small population size means that the success of rental properties will depend heavily on the local economy and whether it attracts a steady stream of renters.
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.