Section 8 Fair Market Rent (FMR) for ZIP 56401 - 2027
Location: Crow Wing County, MN | Metro: Cass County, MN
Investment Score for ZIP 56401
F
Monthly Rent (2BR)
$1,100
Median Price (2BR)
$252,513
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 | $770 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Investment Analysis by Bedroom Size
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms |
Monthly FMR |
Median Price |
1% Rule |
Grade |
| 1BR |
$850 |
$203,732 |
0.42% |
F |
| 2BR |
$1,100 |
$252,513 |
0.44% |
F |
| 3BR |
$1,330 |
$331,568 |
0.4% |
F |
| 4BR |
$1,530 |
$395,402 |
0.39% |
F |
| 5BR |
$1,775 |
$511,634 |
0.35% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$73,128
To determine if you should buy in ZIP 56401 (Brainerd, MN) for Section 8 investment, follow this decision tree:
- Does FMR $1,060 (metro FY 2026) clear debt service on a $318,442 property?
- Yes. If the property's monthly mortgage payment, including taxes and insurance, is less than $1,060, then the FMR covers your debt service. This makes the property financially viable under Section 8.
- No. If the monthly mortgage payment exceeds $1,060, then the FMR does not cover your debt service. Investing in this area for Section 8 would be unprofitable.
- Is market rent $1,054 (ZORI) above, at, or below FMR?
- Above FMR. If the ZORI ($1,054) is higher than the FMR ($1,060), the market is slightly more affordable than what Section 8 will pay. This could indicate that Section 8 tenants might struggle to find non-subsidized housing, increasing demand for your property.
- At FMR. If the ZORI is exactly $1,060, the market rent aligns perfectly with the FMR. This suggests stable demand but limited upside potential beyond covering costs.
- Below FMR. If the ZORI is lower than $1,060, the market is more expensive than the subsidy rate. While this might attract more tenants, it also means that non-subsidized rents are higher, potentially reducing demand for Section 8 properties.
- Are 26.4% renters + 88-day DOM enough demand?
- Yes. With 26.4% of the population being renters and an average of 88 days on the market, there is sufficient demand to fill vacancies quickly. This indicates a healthy rental market where Section 8 properties can be rented out without significant delays.
- No. If the percentage of renters is significantly lower or the days on the market is much higher, the demand is insufficient. It would take longer to fill vacancies, making the investment less attractive.
- It Depends. If the percentage of renters is close to 26.4%, or if the days on the market fluctuates around 88 days, then the demand is moderate. The viability of investing here would depend on other factors such as the stability of the local economy and competition in the rental market.
The final decision to invest in ZIP 56401 hinges on the alignment between FMR and debt service, the relationship between ZORI and FMR, and the strength of local rental demand. If all conditions favor a positive outcome, proceed with confidence. Otherwise, consider other markets that better meet these criteria.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.