Location: Stevens County, MN | Metro: Pope County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56323, located in Stevens County, MN metro, reveals several key insights for landlords and small-portfolio investors.
First, regarding rent math, the comparison between the Fair Market Rent (FMR) of $970 and the market rent of $683 indicates that the rent math does not work favorably. The FMR is significantly higher than what the market currently supports, suggesting that landlords aiming to charge FMR rates will likely face challenges in attracting tenants at those prices.
Second, the acquisition cost in terms of affordability is mixed. With a median home value of $226,631, purchasing property in this area is relatively inexpensive compared to many other markets. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts to sell suggests that the market dynamics for property sales are unclear. This could mean that while the cost of acquiring a home is low, the ease of selling it might be uncertain.
Lastly, there is a notable tenant demand in the area. With a total population of 612 and a renter share of 18.5%, there are approximately 113 potential renters. This figure represents a consistent base of tenants but is relatively small given the overall population size, indicating that competition for rental units could be intense.
In summary, while the median home value presents an opportunity for affordable acquisitions, the discrepancy between FMR and market rents, along with the limited data on market dynamics, suggests caution. Despite the small population, the presence of a dedicated tenant base offers some stability. Landlords should focus on pricing their rentals competitively to ensure occupancy and consider the long-term potential of the area before making investment decisions.
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.