Location: Morrison County, MN | Metro: Mille Lacs County, MN 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 | $800 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,320 | $325,473 | 0.41% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 56359, located in Morrison County, MN metro, reveals several key points. The HUD Fair Market Rent (FMR) for the area is set at $1100 per month for FY 2024, while the market rent based on Census ACS data is significantly lower at $863. This means that voucher tenants will cashflow positively at the HUD FMR rate, providing a margin of $237 per unit over the market rent.
To further analyze the investment potential, consider the median home value in the area, which stands at $291,730. This figure can be used to derive the rent-to-price ratio, which in this case is approximately 0.38%. This low ratio suggests that rental income represents a small portion of the property's value, making it less attractive purely from a cashflow perspective compared to areas with higher ratios.
The average Days on Market (DOM) for the area is not available, but the fact that there is a 0.1% share of homes that have experienced price cuts indicates a stable housing market with little pressure on property values. In such a scenario, the rent-vs-buy dynamics do not significantly impact the decision-making process for investors, as the stability of property values and the positive cashflow from voucher tenants outweigh the need for aggressive pricing strategies.
In conclusion, the strongest investor angle in ZIP code 56359 is cashflow. Despite the low rent-to-price ratio, the substantial difference between the HUD FMR and the market rent ensures that voucher tenants will provide a reliable and positive cashflow, making this area an attractive option for Section 8 investors seeking financial stability and profitability.
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.