Section 8 Fair Market Rent (FMR) for ZIP 56328 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$720
1 Bedroom	$800
2 Bedrooms	$1,020
3 Bedrooms	$1,420
4 Bedrooms	$1,500
5 Bedrooms	$1,740
6 Bedrooms	$1,949
7 Bedrooms	$2,105
8 Bedrooms	$2,210

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, ZIP 56328 is located in Flensburg, Minnesota, and is characterized by a relatively low percentage of renters (6.9%) and a high median income ($107,188). The median home value for the area is $181,500, which is slightly below the national average. However, it's important to note that the specific market rent for ZIP 56328 is not provided, but the Fair Market Rent (FMR) for the metro area as of fiscal year 2026 is set at $980.

The low percentage of renters suggests that the majority of residents in ZIP 56328 own their homes. This could indicate a stable community with long-term residents, which is generally favorable for real estate investment. The high median income of $107,188 implies that there is a strong economic base supporting the local housing market.

In terms of rent economics, the FMR of $980 for the metro area provides a benchmark for rental pricing. While the exact market rent for ZIP 56328 is not specified, the FMR can serve as a guideline for setting rental rates that align with government standards. Given the demographic profile, it's reasonable to assume that the actual market rent could be higher due to the area's affluent nature.

Considering the characteristics of ZIP 56328, it would likely be a better fit for a hands-on value-add buyer rather than a hands-off voucher operator. The potential for higher market rents, coupled with the affluent demographics, suggests that there is room for strategic investments that can yield above-average returns. Landlords and small-portfolio investors should focus on properties that can be improved to command premium rents, thereby maximizing their investment potential.

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.