Location: Traverse County, MN | Metro: Grant County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,290 |
| 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 56248 stands out due to its unique combination of economic indicators. With a population of 761 residents, it has a relatively low rental rate of 14.1%, indicating that most homeowners in this area own their homes outright or have mortgages. The median household income is $83,000, which is notably higher than the national average, suggesting a prosperous community. However, the median home value is $201,045, which is below the typical range for areas with such a high median income, pointing to an affordable housing market.
Moving into the specifics of voucher economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970. This figure represents the maximum amount that a landlord can charge for a Section 8 tenant's portion of the rent. In contrast, the market rent, based on Census ACS data, is significantly lower at $535. This disparity indicates that landlords participating in the Section 8 program in ZIP 56248 could potentially face a financial shortfall if they rely solely on voucher payments to cover their costs.
Given the data, ZIP 56248 presents a stable environment with a strong local economy and a manageable number of renters. The gap between the FMR and the actual market rent suggests that landlords might need to consider additional sources of income or subsidies to ensure profitability when leasing to Section 8 participants. Despite these challenges, the overall stability of the ZIP code, coupled with its affordability, could still make it an attractive investment for those willing to navigate the complexities of the voucher system.
To summarize, ZIP 56248 is characterized by a robust median income and a relatively low median home value, making it an affordable option for potential renters. While the Section 8 voucher system offers a mechanism to support lower-income tenants, the economics of participation must be carefully considered due to the significant difference between the FMR and the actual market rent. This ZIP code appears to be stable, offering opportunities for both landlords and investors who understand the dynamics of the housing market and the federal assistance programs available.
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.