Location: Otter Tail County, MN | Metro: Douglas County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
The ZIP code 56309 stands out with a unique demographic profile and economic conditions that present both opportunities and challenges for landlords and small-portfolio investors. With a population of 1,296 residents, it has a rental rate of 15.0%, indicating a relatively low demand for rental properties compared to other areas. However, the median income of $84,750 is quite robust, suggesting that tenants who do rent are likely to be financially stable. The median home value in the area is $309,679, which reflects a solid real estate market.
When it comes to voucher economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,020, while the current market rent based on Census ACS data is $750. This discrepancy means that landlords accepting Section 8 vouchers can potentially charge above-market rates, which can be attractive given the financial stability of the area's residents. The higher FMR also indicates that there might be an opportunity to increase rental income without compromising tenant affordability.
Overall, the data signature for ZIP 56309 reads as stable. The strong median income supports a healthy rental market, even if the percentage of renters is modest. Landlords should consider the benefits of accepting Section 8 vouchers, as they can provide a steady stream of income while ensuring that their properties are occupied by financially secure tenants. The gap between the FMR and the current market rent suggests a favorable environment for those willing to navigate the requirements of the Section 8 program.
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.