Location: Pope County, MN | Metro: Douglas 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 | $780 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $312,125 | 0.33% | F |
| 3BR | $1,440 | $360,596 | 0.4% | F |
| 4BR | $1,520 | $448,354 | 0.34% | F |
| 5BR | $1,763 | $566,171 | 0.31% | F |
U.S. Census Bureau data (2024)
ZIP code 56308, located in Alexandria, MN, falls within the broader Pope County, MN metro area. The Fair Market Rent (FMR) for ZIP 56308 is set at $1,000 for the fiscal year 2026, which is notably lower than the market rent of $1,398. This indicates that the subsidized rental rates are significantly below what the market demands, suggesting a potential value pocket for landlords participating in the Section 8 program.
The median home value in ZIP 56308 stands at $352,473, which is a key figure to consider when comparing it to other ZIP codes within Pope County. If this home value is below the county average, it could further support the notion of a value pocket, where investment opportunities are more affordable compared to other areas in the metro. However, if it aligns closely with or exceeds the county-wide median, then the lower FMR might simply reflect the local housing dynamics rather than an overall undervalued market segment.
Alexandria's renter share of 27.4% is another critical metric. In a typical Pope County ZIP code, the renter share might be lower, indicating a preference for homeownership. A higher-than-average renter share can signal a greater demand for rental properties, particularly those that qualify for Section 8 assistance. This could make ZIP 56308 a desirable location for landlords looking to cater to subsidized renters.
To determine whether 56308 represents a value pocket, mid-tier neighborhood, or premium sub-market, one must compare these figures against the Pope County averages. Given the lower FMR relative to market rent, combined with a potentially above-average renter share, ZIP 56308 appears to be a prime location for Section 8 investments. It offers landlords a chance to serve a significant portion of the rental market while benefiting from government subsidies that can offset some of the financial risks associated with renting.
If the $352,473 median home value is indeed below the county average, this would confirm that 56308 is a value pocket. Landlords and small-portfolio investors should take note of this divergence, as it suggests that they can acquire properties at a lower cost while still serving a substantial number of renters who rely on Section 8 assistance. This combination of factors makes ZIP 56308 a strategic choice for those interested in the Pope County, MN metro rental market.
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.