Location: Morrison County, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
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 | $1,120 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $277,660 | 0.55% | F |
| 3BR | $2,040 | $349,096 | 0.58% | F |
| 4BR | $2,280 | $376,619 | 0.61% | D |
| 5BR | $2,645 | $453,236 | 0.58% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56329 within Morrison County, MN, reveals several key points that landlords and small-portfolio investors should consider.
The rent math does not favor landlords. The Fair Market Rent (FMR) set at $1,270 for the fiscal year 2024 contrasts sharply with the actual market rent of $1,072 based on Census ACS data. This indicates a discrepancy where the FMR exceeds the market rate, potentially leading to reduced occupancy rates if rents are set too high.
Regarding acquisition affordability, the median home value stands at $340,036. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts suggests limited insight into how quickly properties sell and at what price point. Without these specifics, it's challenging to gauge the overall affordability and liquidity of property acquisitions in this area.
Tenant demand is modest. With a total population of 7,778, only 16.4% are renters. This relatively low renter share implies that there might not be a robust pool of potential tenants, which could impact the ability to maintain consistent occupancy levels.
In summary, ZIP 56329 presents a scenario where the rent math is unfavorable due to the higher FMR compared to the market rent. Acquisition affordability remains ambiguous without additional metrics on DOM and price-cut shares. Lastly, the tenant demand is limited, given the small percentage of the population that rents. These factors suggest that investing in this ZIP code would require careful consideration and possibly a focus on lowering rents to match market expectations to ensure occupancy and profitability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.