Location: Crow Wing County, MN | Metro: Aitkin County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP code 56431 (MN) for Section 8 properties hinges on three key questions:
1) Does FMR $980 (metro FY 2026) clear debt service on a $310,023 property?
Yes. With an FMR of $980, you can cover the debt service on a property priced at $310,023. This assumes a typical mortgage rate and term, allowing for a comfortable margin over the monthly payment.
No. If the FMR does not sufficiently cover the debt service, then purchasing a property in this ZIP code would be financially unwise. However, given the FMR and property price, this scenario is unlikely unless you are financing at unusually high rates or terms.
It Depends. The viability here is contingent upon the specific financing terms, including interest rate and loan duration. Generally, at $980 FMR, it should be feasible to clear debt service on a $310,023 property.
2) Is market rent $829 (Census ACS) above, at, or below FMR?
Above. If the market rent exceeds the FMR, it suggests that the property could potentially generate additional income beyond what is covered by Section 8 vouchers. However, in this case, the market rent of $829 is below the FMR of $980, indicating that the government subsidy will be necessary to meet the rental value.
At. Market rents equaling the FMR means the government subsidy matches the market rate, providing stability but no surplus income. This is not the case for ZIP 56431 as the market rent is below the FMR.
Below. With market rent at $829, which is below the FMR of $980, landlords can rely on the Section 8 program to ensure they receive the higher subsidized rate. This makes the ZIP code attractive for those seeking stable rental income.
3) Are 14.5% renters + N/A-day DOM enough demand?
Yes. A 14.5% rental rate indicates a moderate demand for rentals in the area. While the Days on Market (DOM) data is unavailable, if the rental rate is consistent, there should be sufficient demand to fill vacancies quickly.
No. If the rental rate is low and combined with high DOM figures, it would suggest a weak rental market. However, since the DOM data is missing, this conclusion cannot be definitively made based on the available information.
It Depends. Given the rental rate of 14.5%, demand seems adequate. However, without knowing the DOM, it's hard to assess how quickly properties get rented out. A low DOM would further support the attractiveness of this ZIP code for Section 8 investments.
In summary, ZIP 56431 appears to be a viable investment for Section 8 properties due to the FMR covering debt service and exceeding market rent. Demand for rentals is present, though the lack of DOM data introduces some uncertainty. Landlords should consider these factors carefully before making an investment decision.
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.