Location: Morrison County, MN | Metro: Crow Wing County, MN
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,670 | $416,933 | 0.4% | F |
| 4BR | $1,870 | $471,052 | 0.4% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP code 56449 presents a nuanced picture for landlords and small-portfolio investors. With a median home value of $389,064, the area has established itself as a middle-tier market, neither at the peak nor at the bottom of the housing spectrum. The absence of data on the percentage of listings that have been reduced and the median days on market (DOM) suggests stability in the housing market, implying that sellers and buyers are finding equilibrium in terms of pricing and demand.
On the rental side, the Forward Monthly Rent (FMR) for ZIP 56449 is set at $1,270 for the fiscal year 2026, while current market rents stand at $1,100. This gap indicates a potential increase in rental income as the market adjusts to the projected FMR. Landlords can expect gradual rent increases as the market moves towards aligning with the FMR, enhancing their cash flow over the next 12-24 months.
The setup implied by the data suggests that for long-hold investors, there is a realistic appreciation thesis. The stable median home value combined with the upward trend in expected rental rates points to a positive outlook for property values. As rental incomes rise, the attractiveness of owning property in this area may also increase, potentially driving up home values.
However, it's important to note that the lack of specific data on listing reductions and DOM does not provide a complete picture of market volatility. Investors should be prepared for potential fluctuations in both home values and rental rates as external factors such as economic conditions, interest rates, and local job markets influence the real estate environment.
In summary, the current median home value and the anticipated rise in rental rates suggest a favorable market for long-term investment in ZIP 56449. The data supports a thesis of gradual appreciation and improved rental yields, making it an attractive location for those looking to build a steady portfolio over the coming years.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.