Location: Douglas County, MN | Metro: Douglas County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 56355 is situated in a small, rural neighborhood characterized by a modest population of 737 residents. With only 23.0% of the population renting their homes, it's evident that homeownership is a significant factor in this area. The median household income stands at $97,500, indicating a relatively affluent community where most residents can afford to own rather than rent.
Despite the high median income, the market rent in ZIP 56355 is notably lower at $782 per month, based on recent Census ACS data. This figure contrasts sharply with the Fair Market Rent (FMR) set at $1,080 for the metro area for fiscal year 2026. The discrepancy between the FMR and the actual market rent suggests a potential opportunity for rental property owners who can offer competitive amenities or locations within the ZIP code.
For a Section 8 investor, ZIP 56355 presents a mixed landscape. The low percentage of renters implies fewer immediate opportunities for hands-off voucher operators, as the demand for subsidized housing may be limited. However, the significant gap between the FMR and the market rent could attract hands-on value-add buyers who are willing to renovate properties or improve services to justify higher rents closer to the FMR.
In summary, while ZIP 56355 may not be ideal for passive investors relying solely on Section 8 vouchers due to the low rental demand, it offers a viable niche for active investors who can enhance property values and appeal to a broader range of tenants willing to pay closer to the FMR of $1,080. Such an approach would require a detailed analysis of local market conditions and the ability to execute improvements effectively to capitalize on the potential rental price increase.
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.