Location: Todd County, MN | Metro: Douglas County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56446 in Todd County, Minnesota reveals several key points that landlords and small-portfolio investors should consider.
Firstly, regarding rent math, the Fair Market Rent (FMR) set at $970 for the fiscal year 2026 is notably higher than the current market rent of $800 as reported by the Census ACS. This indicates that while landlords can potentially charge closer to the FMR, they must be cautious about setting rents too high above the market average, which could deter tenants.
Secondly, the acquisition cost of properties in this area is relatively affordable, with a median home value of $234,595. However, due to the lack of data on days on market (DOM) and the percentage of homes needing price cuts, it's difficult to assess the competitive nature of property sales and how quickly homes might be acquired. Investors should look into local real estate trends to make an informed decision on pricing strategies and potential holding periods before purchase.
Lastly, tenant demand appears to be limited given the small population size of 1,418 and a relatively low renter share of 12.0%. This suggests that there may not be a large pool of potential tenants, which could impact occupancy rates and rental income stability.
In conclusion, while the potential to increase rents exists, it must be balanced against the actual market conditions and the limited number of renters in ZIP 56446. The median home value offers a reasonable entry point for investment, but the absence of detailed DOM and price-cut data makes it challenging to gauge the ease of acquiring properties. With only a modest 12.0% of the population renting, landlords need to ensure their units are attractively priced and well-marketed to secure tenants in this small market. Overall, the ZIP code presents opportunities but requires careful consideration of the local dynamics to achieve financial success.
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.