Location: Traverse County, MN | Metro: Traverse County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 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 analysis of the Section 8 program in ZIP 56296 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 56296 is set at $970 for fiscal year 2026, while the Census ACS data indicates a market rent of $612. This means the FMR is $358 higher than the market rent, representing a 58.5% premium.
This gap makes ZIP 56296 a prime location for landlords and small-portfolio investors seeking to maximize yields through the Section 8 program. Despite the fact that only 19.5% of residents are renters, the median home value stands at $123,927, and the median income is $53,527, the disparity between FMR and market rent allows landlords to charge higher rates for voucher tenants without exceeding the FMR threshold.
However, it's important to note that the rental market in ZIP 56296 is currently HOT, with an average rent of $905. This suggests strong demand, which could be leveraged to attract both voucher and non-voucher tenants. Given that the national average rent is $2,000, the average rent in ZIP 56296 is 55% lower, indicating a relatively affordable rental market.
In conclusion, the gap between the FMR and market rent in ZIP 56296 presents a compelling opportunity for landlords and investors to achieve higher yields through the Section 8 program. With a 58.5% premium over the market rent, landlords can secure stable rental income that exceeds the typical market rate.
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.