Location: Swift County, MN | Metro: Chippewa County, MN
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,480 | $179,381 | 0.83% | C |
U.S. Census Bureau data (2024)
The classification of ZIP code 56215 hinges on analyzing both its yield potential and stability factors. On the yield axis, the Family Monthly Rent (FMR) for the metro area in fiscal year 2026 is projected at $1,050, while the market FMR stands at $982. The median home value in this ZIP code is notably higher at $179,546. This indicates that rental properties in ZIP 56215 can offer a decent yield compared to the overall market, especially if one considers the gap between the metro and market FMRs. However, the high median home value suggests that purchasing property here might be capital-intensive.
Moving onto stability, ZIP 56215 has a renter population making up 31.6% of its residents. While this percentage is significant, it doesn't provide a complete picture without knowing the days-on-market (DOM) figure, which is unfortunately not available. Additionally, the average income in the area is $56,604. This income level, combined with the renter percentage, points towards a moderate level of stability. Renters have sufficient income to cover their monthly expenses, including rent, but the lack of DOM data leaves some uncertainty regarding how quickly vacancies can be filled.
Based on these figures, ZIP 56215 appears to be a market that offers a balance between yield and stability. It's neither a high-yield/low-stability flip-style market nor purely a steady-cashflow zone. Instead, it represents a middle ground where investors can expect reasonable returns on investment, albeit with the need for a higher initial capital outlay due to the elevated median home values. The presence of a sizeable renter population and decent average income supports steady cash flow, though the absence of DOM data means there could be periods of fluctuation in vacancy rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.