Location: Todd County, MN | Metro: Morrison County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
U.S. Census Bureau data (2024)
The ZIP code 56438, located within the Todd County, MN metro, presents a unique snapshot when compared against typical ZIP codes in the same county. The Fair Market Rent (FMR) for 56438 is set at $970 for fiscal year 2026, slightly above the market rent figure of $883. This indicates that while there is a demand for rental properties, the actual rents charged are somewhat lower than what the government deems fair, suggesting a moderate pricing environment.
The median home value in 56438 stands at $261,524, which is likely reflective of the broader Todd County housing market. However, it's important to note the 22.6% share of renters in this ZIP code. This percentage is significant, particularly when considering that it exceeds the average renter share in many suburban areas, which typically hovers around 15-20%. The higher renter share in 56438 could indicate a concentration of tenants who might benefit from Section 8 housing assistance, making it an attractive area for landlords looking to participate in such programs.
To determine whether 56438 is a value pocket, a mid-tier neighborhood, or a premium sub-market within its metro, we must consider the interplay between its FMR, market rent, home value, and renter share. Given that the FMR is higher than the market rent, but the home values are not exceptionally high, it suggests that 56438 is a mid-tier neighborhood. It offers a balance where landlords can potentially leverage the Section 8 program without dealing with the lowest-end properties, which might require more maintenance and management effort.
A key point of interest is the divergence between the relatively high renter share and the home values. Typically, ZIP codes with a high percentage of renters and lower-than-average home values are considered prime areas for Section 8 participation. In 56438, however, the home values are not notably low, indicating a middle-ground scenario. This ZIP code could still be seen as a sweet spot for Section 8 landlords, especially those willing to manage properties at a slightly higher price point than the typical low-value pocket.
In summary, 56438 appears to be a mid-tier neighborhood within the Todd County, MN metro. Its characteristics make it a viable option for landlords interested in the Section 8 program, offering a mix of manageable property values and a significant renter population. However, it is not a value pocket due to its higher home values, nor a premium sub-market given its below-FMR market rents.
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.