Location: Pope County, MN | Metro: Douglas County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56349, located in Pope County, Minnesota, reveals several key points that are crucial for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,130. However, the current market rent, according to the Census ACS, is only $881. This discrepancy means that landlords might not be able to charge the FMR without risking vacancy rates, as the local market does not support such high rents.
Regarding the affordability of acquisition, the median home value in ZIP 56349 stands at $323,833. Unfortunately, the data on the number of days on the market (DOM) and the percentage of homes requiring price cuts before sale are not available. Despite this lack of detail, the median home value suggests that acquiring properties in this area would be relatively expensive compared to other rural regions, but it is still within reach for many investors.
The third question concerns tenant demand. The total population of ZIP 56349 is 829, with 16.8% being renters. This indicates a limited pool of potential tenants, which could make it challenging to find enough qualified renters to fill all units, especially considering the modest size of the community.
Verdict: While the acquisition cost of properties in ZIP 56349 is not prohibitively high at $323,833, the rent math does not align favorably due to the significant gap between the FMR and the actual market rent. Additionally, the small population and low renter share suggest that tenant demand may be insufficient to sustain a robust rental market. Investors should proceed with caution and consider these factors carefully before committing to investments in this area.
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.