Location: Todd County, MN | Metro: Morrison 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 | $740 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $405,111 | 0.33% | F |
U.S. Census Bureau data (2024)
The ZIP code 56318, with a population of 1,191, is primarily a homeowner-dominated area where only 9.7% of residents are renters. This indicates that the rental market is relatively small compared to the overall population, suggesting that there is not a heavy demand for Section 8 tenants. The median household income in this ZIP is $84,297, which provides context for evaluating the local rental market.
The typical market rent of $763 represents approximately 9% of the median household income. While this figure might seem reasonable, it's important to note that the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970. This means that the actual market rent is below the FMR, indicating that rents in ZIP 56318 are lower than the average for the region.
A landlord in ZIP 56318 can expect tenants who are likely to have a higher income relative to their rent burden. Given the low percentage of renters and the income levels, it's unlikely that a significant portion of potential tenants will rely solely on Section 8 vouchers. Instead, landlords should anticipate tenants who may supplement their rental payments with vouchers but also have additional income sources to cover the difference between the voucher amount and the market rent.
In summary, ZIP 56318 is not an ideal location for focusing exclusively on Section 8 tenants due to its low renter population and higher median income. Landlords should be prepared to attract tenants who are financially capable of paying market rates and may use vouchers as part of their payment strategy rather than as the sole source of funding.
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.