Location: Otter Tail County, MN | Metro: Grant County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56324, located in Otter Tail County, MN metro, reveals several key points for potential Section 8 landlords and small-portfolio investors.
First, does the rent math work? The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970. However, the current market rent, according to Census ACS data, is $775. This indicates that the rent math does not currently favor landlords participating in the Section 8 program, as the market rate is significantly below the FMR threshold.
Second, is acquisition affordable? The median home value in ZIP 56324 stands at $317,437. Unfortunately, the data on the number of days on the market (DOM) and the percentage of homes requiring price cuts are not available, which makes it challenging to assess the overall affordability of property acquisition in this area. Given the median home value, however, it suggests that purchasing a property could be relatively expensive compared to other areas.
Third, is there tenant demand? The population of ZIP 56324 is 1,028, with a 7.8% renter share. This means there are approximately 80 renters in the area. While the number of potential tenants is limited, the presence of any demand can still be attractive to landlords, especially if they can secure Section 8 vouchers.
Verdict: The rent math in ZIP 56324 does not currently work in favor of landlords due to the discrepancy between the FMR ($970) and the actual market rent ($775). Acquisition of properties appears to be costly, given the median home value of $317,437, though without DOM and price-cut share data, a complete assessment cannot be made. Tenant demand is present but modest, with only around 80 renters out of a total population of 1,028. Landlords should proceed with caution, focusing on securing Section 8 vouchers to bridge the gap between FMR and market rents, while being aware of the limited pool of potential tenants.
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.