Location: Lac qui Parle County, MN | Metro: Lac qui Parle County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
U.S. Census Bureau data (2024)
The ZIP code 56257, located within the Lac qui Parle County, MN metro, presents a unique profile when compared to other ZIP codes in the area. The Fair Market Rent (FMR) for ZIP 56257 is set at $1,020 for fiscal year 2026, which is higher than the average market rent of $938. This suggests that while the government's estimate of what constitutes a fair rent price is slightly elevated, actual rents charged by landlords are lower.
A notable point is the lack of available data on home values for ZIP 56257. In contrast, other ZIP codes in Lac qui Parle County might have more detailed information regarding property values, making it challenging to place 56257 directly within a value pocket, mid-tier neighborhood, or premium sub-market classification based solely on home values. However, the absence of home value data could imply a concentration of rental properties rather than owner-occupied homes.
The renter share in ZIP 56257 stands at 19.9%, which is above the typical percentage seen in many rural areas. This indicates a significant portion of the population relies on rentals, potentially creating a robust demand for affordable housing options. Given the discrepancy between the FMR and the actual market rent, combined with the relatively high renter share, ZIP 56257 could be considered a sweet spot for Section 8 investments. Landlords can charge rents below the FMR threshold, thereby qualifying for Section 8 subsidies, while still maintaining competitive rates within the local market.
To further contextualize the position of ZIP 56257 within the Lac qui Parle County, MN metro, a comparative analysis against other ZIP codes would be necessary. Specifically, examining the FMR and market rent trends across different ZIP codes would provide a clearer picture of how 56257 stacks up against its peers. Additionally, understanding the broader economic context, such as employment rates and median household incomes, would help in determining the overall attractiveness of the ZIP code for rental investment.
In summary, ZIP 56257 appears to be a mid-tier neighborhood with potential for being a value pocket within the Lac qui Parle County, MN metro. Its higher FMR compared to the actual market rent and above-average renter share make it an appealing option for landlords and small-portfolio investors looking to capitalize on Section 8 opportunities. However, the lack of home value data limits a complete assessment of its status as a premium sub-market.
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.