Location: Mille Lacs County, MN | Metro: Mille Lacs County, MN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $2,170 |
| 5 Bedrooms | $2,517 |
| 6 Bedrooms | $2,819 |
| 7 Bedrooms | $3,045 |
| 8 Bedrooms | $3,197 |
U.S. Census Bureau data (2024)
The rent math in ZIP code 56363 does not align favorably for Section 8 landlords. The Fair Market Rent (FMR) set by HUD for FY 2024 is $1210, while the Census ACS reports a market rent of $1,116. This discrepancy means that landlords receiving Section 8 payments will be renting below the market rate, which could result in financial losses if maintenance and operational costs are not covered.
Acquisition in this area is challenging due to limited data on median home values, days on market (DOM), and the percentage of homes that have had their prices cut. These factors are crucial for assessing the affordability of acquiring properties. Without specific figures, it's difficult to make an informed decision regarding property purchase, suggesting that further investigation into local real estate trends is necessary before making any acquisitions.
Tenant demand in ZIP 56363 is moderate. With a total population of 238 and a renter share of 23.2%, there are approximately 55 potential renters in the area. This number indicates a relatively stable but small pool of tenants, which might limit the size of the landlord or investor base that can be supported effectively.
Verdict: While there is a modest tenant demand in ZIP 56363, the rent math does not work in favor of landlords due to the lower-than-market Section 8 rates. Additionally, the lack of detailed data on median home values, DOM, and price cuts makes acquisition decisions risky and uncertain. Landlords and small-portfolio investors should proceed with caution and consider supplementing their analysis with local real estate insights to make informed decisions.
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.