Location: Stevens County, MN | Metro: Stevens 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 | $720 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,440 | $195,403 | 0.74% | D |
| 4BR | $1,740 | $245,086 | 0.71% | D |
U.S. Census Bureau data (2024)
The ZIP code 56267 encompasses a suburban neighborhood with a total population of 6,783 residents. A significant portion, 43.8%, are renters, indicating a notable demand for rental properties in the area. The median household income stands at $74,442, which is relatively high, suggesting that many residents have the financial stability to afford decent housing. The median home value in the region is $214,280, reflecting the overall cost of homeownership.
Turning to the economic dynamics of renting, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,000. However, the current market rent, according to Census ACS data, is slightly lower at $970. This difference highlights an opportunity for landlords to potentially increase rents without significantly outpacing the affordability threshold, given the area's median income.
Considering the investment profile, ZIP 56267 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the presence of a substantial rental market and the alignment of market rents with FMRs make it a stable environment for managing Section 8 properties. For those inclined towards a more active role, the potential to raise rents above the current market rate, while still within the FMR, allows for value-add strategies such as improving property amenities or enhancing the overall quality of the units to justify higher rents.
In conclusion, the ZIP 56267 neighborhood offers a balanced mix of stability and opportunity for Section 8 investors. Its demographic makeup and economic indicators support both passive and active investment approaches, making it a viable option for landlords and small-portfolio investors looking to enter or expand their holdings in this area.
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.