Location: Grant County, MN | Metro: Grant County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,460 for ZIP 56311 will sufficiently cover the mortgage on a home priced at $258,382. To assess this, we must consider the typical mortgage rate and term. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly principal and interest payment would be approximately $1,380. This figure does not include property taxes, insurance, or maintenance costs, which can add significantly to the monthly expenses. However, the FMR of $1,460 provides a buffer to cover these additional costs.
The investor may also express concern about the renter demand at 17.3%. While this percentage seems modest, it is important to note that ZIP 56311 is located in a rural area where housing needs may differ from urban centers. The 17.3% represents a portion of the population that is likely to be seeking rental properties. Given the median household income and employment trends in the area, this demand is expected to remain steady.
Another objection could be whether Housing Choice Vouchers will keep pace with the $1,309 average market rent. According to the data, the voucher amount in ZIP 56311 is $805 for a one-bedroom unit and $911 for a two-bedroom unit. These amounts fall below the average market rent, suggesting that voucher holders may struggle to find suitable housing. Landlords should be aware that voucher recipients may require assistance in finding units within their budget or may need to supplement the voucher with additional income.
In summary, while the FMR provides a reasonable cushion over the mortgage payment, the renter demand appears adequate for the local context. However, Housing Choice Vouchers may not fully cover the average market rent, which could pose challenges for landlords and tenants alike.
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.