Location: Traverse County, MN | Metro: Big Stone County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
U.S. Census Bureau data (2024)
The ZIP code 56221, with a population of 731, is primarily characterized by a modest rental market. Only 15.7% of the residents are renters, indicating that this area is predominantly homeowner-dominated rather than a renter-heavy zone. This suggests that the demand for Section 8 vouchers is likely to be relatively low compared to areas with higher percentages of renters.
The median household income in this ZIP is $74,583, which provides a benchmark against which we can assess the affordability of housing. The typical market rent of $779 represents approximately 10.5% of the median income, which is relatively low. However, when compared to the Fair Market Rent (FMR) of $970 for the fiscal year 2026, the current market rent is below the FMR, implying that rents are generally affordable in this area.
A landlord in ZIP 56221 should expect tenants who are likely to be on fixed incomes, such as those receiving Section 8 vouchers. Given the low percentage of renters and the modest income levels, these tenants would typically spend around 10.5% of their income on rent, which is well below the 30% threshold often used to define affordability. This makes it feasible for landlords to offer properties at the market rate while still being attractive to voucher holders.
To conclude, landlords in this ZIP code should prepare for a tenant base that includes individuals with limited financial resources, relying on government assistance for housing. These tenants will seek out the most affordable options, making properties priced at or slightly above the market rent of $779 suitable for them. Despite the homeowner-dominated nature of the area, there remains an opportunity for landlords to cater to the smaller but present renter population effectively.
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.