Section 8 Fair Market Rent (FMR) for ZIP 56447 - 2027

Location: Crow Wing County, MN | Metro: Crow Wing County, MN

Investment Score for ZIP 56447

F
Monthly Rent (2BR)
$1,460
Median Price (2BR)
$350,801
1% Rule
0.42%
Annual Yield
4.99%

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$1,010
1 Bedroom$1,110
2 Bedrooms$1,460
3 Bedrooms$1,760
4 Bedrooms$2,050
5 Bedrooms$2,378
6 Bedrooms$2,663
7 Bedrooms$2,876
8 Bedrooms$3,020

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,460 $350,801 0.42% F
3BR $1,760 $452,631 0.39% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
843
Median Household Income
$64,464
Housing Units
1,269
Renter Percentage
5.7%
Occupancy Rate
31.8%
Renter Occupied
23

ZIP 56447, located in Emily, MN within Crow Wing County, presents itself as an ideal cash-flow anchor for a Section 8 portfolio strategy. The key factor supporting this classification is the significant spread between the Fair Market Rent (FMR) set at $1,620 for the metro area in fiscal year 2026 and the current market rent of $683. This discrepancy means that properties in this ZIP code can generate a substantial positive cash flow when rented under the Section 8 program.

The median home value in ZIP 56447 stands at $367,920, which is relatively high compared to the median income of $64,464. This suggests that while property values are higher, the local population might find it challenging to afford market-rate rents, making subsidized housing through Section 8 more attractive and viable.

Moreover, the low price-cut share and N/A-day days on market (DOM) indicate that the housing market in this area is stable, with little need for drastic price reductions to sell homes. This stability supports the notion that properties here will likely maintain their value, ensuring that they serve as reliable anchors in a portfolio.

The renter share in ZIP 56447 is 5.7%, which is modest but still indicates a market where a portion of residents are looking for rental options. While this doesn't make it a primary diversifier, it does mean that there is a consistent demand for rentals, including those supported by Section 8 vouchers.

In summary, ZIP 56447 is best suited as a cash-flow anchor due to the high FMR relative to market rent and stable property values. This makes it an excellent choice for landlords and small-portfolio investors seeking steady, predictable returns.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.