Section 8 Fair Market Rent (FMR) for ZIP 56381 - 2027

Location: Pope County, MN | Metro: Pope County, MN

Investment Score for ZIP 56381

N/A

Monthly Rent (2BR)

$1,130

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$790
1 Bedroom	$860
2 Bedrooms	$1,130
3 Bedrooms	$1,380
4 Bedrooms	$1,490
5 Bedrooms	$1,728
6 Bedrooms	$1,935
7 Bedrooms	$2,090
8 Bedrooms	$2,195

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,380	$320,705	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,344

Median Household Income

$77,146

Housing Units

1,379

Renter Percentage

16.8%

Occupancy Rate

75.5%

Renter Occupied

175

To determine if you should buy in ZIP code 56381 for Section 8 investment, follow this decision tree based on the specific data points provided:

Does the Fair Market Rent (FMR) of $1,080 cover the debt service on a property valued at $318,881?
- If yes, proceed to the next question.
- If no, do not invest in this ZIP code for Section 8. The FMR must be sufficient to meet the debt obligations of the property.
Is the market rent of $1,022 above, at, or below the FMR?
- If the market rent is above the FMR, it indicates strong demand and potentially higher returns. Proceed to the next question.
- If the market rent is at or below the FMR, the property will likely only attract Section 8 tenants. This scenario requires careful consideration of the rental market dynamics and the potential for vacancy. It depends on your tolerance for risk and the local market conditions.
Are 16.8% of residents renters and is the Days on Market (DOM) sufficient to ensure demand?
- If the percentage of renters is high and the DOM is low, indicating quick turnover, there is enough demand. Invest in this ZIP code.
- If the percentage of renters is low or the DOM is high, suggesting slow turnover, demand may not be robust enough. Do not invest in this ZIP code.

The Fair Market Rent of $1,080 must first clear the debt service on a property priced at $318,881. This ensures that the income from Section 8 tenants will cover the mortgage and other financial obligations associated with owning the property.

Next, compare the market rent of $1,022 against the FMR. A market rent above the FMR suggests a healthy rental market where Section 8 properties can compete effectively, while a market rent at or below the FMR means the property will likely cater exclusively to Section 8 tenants.

Finally, assess the demand. With 16.8% of residents being renters and the DOM status unknown, the viability hinges on whether the rental population is large enough to sustain tenancy. Without a clear Days on Market figure, the decision becomes contingent upon the local rental market's strength and stability.

In summary, if the FMR covers debt service and the market rent is competitive, the ZIP code shows promise. However, without a clear indication of the DOM, the decision to invest ultimately depends on the landlord's assessment of the local rental market's ability to sustain tenancy.

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.