Location: Pine County, MN | Metro: Aitkin County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
U.S. Census Bureau data (2024)
To integrate ZIP 56350 into a Section 8 portfolio strategy, consider it primarily as an appreciation play. Despite the ZIP code's median home value being at $203,614 and the Fair Market Rent (FMR) for the Pine County, MN metro area set at $1,060 for fiscal year 2026, which is below the market rent of $1,153, there are several factors that support this classification.
The primary reason for categorizing ZIP 56350 as an appreciation play is the lack of significant price-cut shares and days on market (DOM) data. This suggests that the housing market in this area is relatively stable, with little indication of overstocked inventory or declining values. Landlords and small-portfolio investors should be aware that the slight difference between the FMR and market rent, with a spread of $93, might initially appear as a disadvantage. However, the stability of the housing market can lead to long-term appreciation, making up for any short-term rental losses.
Additionally, the median income in ZIP 56350 stands at $41,667, which aligns well with the income levels of potential Section 8 tenants. This ensures a steady demand for affordable housing, supporting the stability and growth of property values over time. The 11.9% renter share also indicates a diverse housing market where both homeownership and renting coexist, providing landlords with a niche but consistent tenant pool.
In conclusion, while ZIP 56350 offers a modest cash-flow opportunity due to the slightly lower FMR compared to the market rent, the primary strategic benefit lies in its potential for appreciation. The absence of significant price-cut shares and DOM data, combined with a stable median income, makes it an ideal location for investment focused on long-term capital gains rather than immediate high cash flow.
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.