Section 8 Fair Market Rent (FMR) for ZIP 56436 - 2027
Location: Hubbard County, MN | Metro: Hubbard County, MN
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
To determine if a landlord should invest in ZIP code 56436 for Section 8 properties, follow this decision tree:
- Does the Fair Market Rent (FMR) of $1,010 cover debt service on a property?
- If yes: Proceed to the next question.
- If no: Do not purchase a property in this ZIP code for Section 8 tenants. The rent will not be sufficient to cover your mortgage and other expenses.
- Is the market rent above, at, or below the FMR of $1,010?
- If above: It depends on the specifics of the property and the local rental market dynamics. High market rents might indicate strong demand, but they also suggest that Section 8 tenants might struggle to find units within their budget.
- If at or below: This aligns well with the FMR, making it easier to secure tenants without financial strain. Continue to the next question.
- Are the percentage of renters and days on market (DOM) indicative of sufficient demand?
- If the percentage of renters is high and DOM is low: Yes, there is likely enough demand for Section 8 properties in this area. Tenants are actively seeking housing and are likely to move in quickly.
- If the percentage of renters is low and DOM is high: No, there is insufficient demand. Properties may remain vacant for extended periods, leading to financial losses.
- If it's unclear: It depends on further analysis of the local rental market trends and the specific property conditions. Consider consulting a local real estate agent for insights into the current supply and demand situation.
Note: Due to the lack of specific data points regarding the average market rent, the percentage of renters, and the days on market, the decision-making process relies on hypothetical scenarios. Ensure you gather detailed local market data before making any investment decisions.
Data Sources: FMR data from HUD (2027).
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.