Section 8 Fair Market Rent (FMR) for ZIP 56345 - 2027

Location: Morrison County, MN | Metro: Morrison County, MN

Investment Score for ZIP 56345

Monthly Rent (2BR)

$1,010

Median Price (2BR)

$235,206

1% Rule

0.43%

Annual Yield

5.15%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$710
1 Bedroom	$790
2 Bedrooms	$1,010
3 Bedrooms	$1,410
4 Bedrooms	$1,490
5 Bedrooms	$1,728
6 Bedrooms	$1,935
7 Bedrooms	$2,090
8 Bedrooms	$2,195

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$790	$141,303	0.56%	F
2BR	$1,010	$235,206	0.43%	F
3BR	$1,410	$280,346	0.5%	F
4BR	$1,490	$318,096	0.47%	F
5BR	$1,728	$367,833	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

15,008

Median Household Income

$60,676

Housing Units

6,694

Renter Percentage

25.5%

Occupancy Rate

95.9%

Renter Occupied

1,637

Little Falls, MN, located in the heart of Morrison County, offers a stable environment for real estate investment, particularly within the context of Section 8 housing. The area is known for its quiet residential neighborhoods and proximity to natural amenities, making it an attractive location for both tenants and landlords.

The Fair Market Rent (FMR) for ZIP 56345 is set at $980 for the fiscal year 2026, indicating the maximum amount that landlords can charge for Section 8 rental units in this area.
The market rent, as per Census American Community Survey (ACS) data, stands at $780, which is significantly lower than the FMR, suggesting a potential opportunity for landlords to benefit from the higher reimbursement rates offered by the Section 8 program.
The median home value in Little Falls is $267,010, providing a benchmark for property values and potentially influencing the attractiveness of the area for homeownership versus renting.
Renters make up 25.5% of the local housing market, a figure that highlights the demand for rental properties but also indicates a substantial portion of the population owning homes.
The median household income is $60,676, offering insight into the economic stability and earning power of the local residents, which is crucial for assessing the ability to pay rent.
Data on the average days on market (DOM) for rentals is currently unavailable, but given the relatively low market rent and high FMR, it's reasonable to expect strong interest in Section 8 rental properties.

For landlords and small-portfolio investors, Little Falls presents a balanced market with a significant gap between the market rent and the FMR, allowing for potentially lucrative investments in Section 8 properties. The median home value suggests that there is a mix of affordability and desirability in the area, while the median income provides assurance regarding the financial stability of potential tenants. With nearly a quarter of the population renting, there is a notable demand for affordable housing, making Section 8 properties a strategic choice for those looking to enter or expand their investment in this sector.

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.