Location: Crow Wing County, MN | Metro: Cass County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 56448 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area for fiscal year 2026 is set at $1,190. However, the current market rent is not available, which indicates that landlords might be able to charge higher rents than the FMR if they choose to do so.
The median home value in ZIP 56448 is $433,900, while the median income is $93,365. With only 5.8% of residents being renters, it suggests that the majority of the population owns their homes. This context is crucial when considering the implications of the FMR versus market rent disparity.
If the market rent exceeds the FMR, landlords accepting Section 8 vouchers would be operating at a discount, potentially reducing their overall yield. Conversely, if the FMR is higher than the market rent, the gap makes ZIP 56448 a favorable location for landlords who can leverage the government subsidy to ensure stable rental income. In this case, the FMR is higher than the median home value ($433,900) would suggest, indicating a potential yield play for landlords who accept voucher tenants.
The gap between the FMR and the median home value can be quantified. At $1,190, the FMR is approximately 27.45% of the median home value, suggesting that the rental market is relatively affordable compared to homeownership costs. This affordability could attract voucher holders, making it a strategic decision for landlords to participate in the Section 8 program to secure a steady stream of income.
In summary, the gap between the FMR and the market rent in ZIP 56448, along with the low percentage of renters and high median home value, positions this area as a yield play for landlords who accept Section 8 vouchers. This strategy allows landlords to benefit from government subsidies while providing affordable housing options to tenants.
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.