Location: Crow Wing County, MN | Metro: Mille Lacs County, MN HUD Metro FMR Area
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 | $840 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $267,431 | 0.44% | F |
| 3BR | $1,430 | $356,244 | 0.4% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 56450, which encompasses Garrison, MN, within Crow Wing County, reveals a favorable environment for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1250 per month. This figure is significantly higher than the market rent reported by the Census American Community Survey (ACS), which stands at $941 per month.
Voucher tenants in this region can easily cashflow at the HUD FMR rate. With the HUD FMR at $1250 and the market rent at $941, landlords can expect a positive cashflow when renting to voucher holders. This is especially true since the difference between the two rates allows for covering property management costs, maintenance expenses, and other operational costs associated with rental properties.
The median home value in ZIP 56450 is $265,134. Using the HUD FMR of $1250, we can calculate the rent-to-price ratio, which is approximately 5.1%. This ratio indicates that the cost of renting is relatively low compared to the cost of buying, suggesting that the rental market is robust and competitive. However, it also implies that homeownership might be more attractive to some residents, depending on their financial situation and long-term plans.
Note that the data on median Days on Market (DOM) and the percentage of price cuts are not available. Despite this lack of information, the strong rent-to-price ratio supports the notion that the rental market is stable and likely to remain so. Landlords can benefit from steady cashflows without the need for significant price adjustments or prolonged vacancy periods.
In conclusion, the strongest angle for investors in ZIP 56450 is cashflow. The disparity between the HUD FMR and the actual market rent ensures that landlords can maintain positive cashflow positions, making this area particularly appealing for those seeking reliable returns from their rental investments.
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.