Location: Mille Lacs County, MN | Metro: Mille Lacs County, MN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
U.S. Census Bureau data (2024)
16.3% of residents in ZIP code 56386 are renters, indicating a modest demand for rental properties in the area. The $886 market rent, derived from Census ACS data, reflects the average monthly rent that tenants are currently paying. This figure is notably lower than the $1000 Fair Market Rent (FMR) set for zip code 56386 for fiscal year 2024, suggesting that landlords could potentially increase their rents to align with government standards without alienating tenants. However, the median home value of $288,798 implies that homeownership is still a significant factor in the local real estate market, possibly due to the median income of $54,583 which provides financial stability for many households.
The absence of specific data on days on market (DOM) and the percentage of price-cut shares indicates a lack of volatility in the housing market. Landlords and small-portfolio investors should be cautious about setting rents above the $886 market rate, as doing so could lead to longer vacancy periods. Nevertheless, aligning with the $1000 FMR can ensure compliance with HUD guidelines and maximize potential rental income.
In terms of Section 8 participation, the $1000 FMR is the key figure. Landlords who accept Section 8 vouchers will receive a payment standard of up to $1000 per month, depending on the unit size and location within the zip code. Given the current market conditions and the relatively low market rent compared to the FMR, Section 8 can provide a stable source of income for landlords willing to participate in the program.
Section 8 Verdict: Acceptable for landlords seeking stable, government-backed rental income.
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.