Location: Cass County, MN | Metro: Cass 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 | $730 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $385,327 | 0.26% | F |
| 3BR | $1,340 | $500,463 | 0.27% | F |
| 4BR | $1,700 | $619,005 | 0.27% | F |
U.S. Census Bureau data (2024)
A decision tree for whether to buy in ZIP code 56452 (Hackensack, MN) for Section 8 investment hinges on three key factors: Fair Market Rent (FMR), market rent, and rental demand.
Does the FMR of $970 cover the debt service on a $381,391 property?
Yes: The FMR of $970 is sufficient to clear debt service if the monthly mortgage payment is less than $970. Assuming a standard mortgage rate and term, a property priced at $381,391 would likely have a monthly mortgage payment that is covered by the FMR.
No: If the monthly debt service exceeds $970, then relying solely on Section 8 tenants will not be financially viable. In this case, do not proceed with the purchase based on Section 8 alone.
It Depends: This scenario arises if the exact debt service amount is unknown. To make an informed decision, calculate the expected monthly mortgage payment using current interest rates and typical loan terms.
Is the market rent of $719 (from Census ACS) above, at, or below the FMR?
Above: If the market rent were above the FMR, it would indicate that Section 8 properties are underpriced compared to the local market. However, since the market rent is $719, which is below the FMR, landlords can charge higher rents to Section 8 tenants without exceeding the maximum allowed by the program.
At: Not applicable in this case as the market rent is lower than the FMR.
Below: With market rent at $719, landlords can benefit from the higher FMR of $970. This means they can potentially charge more than the average market rent while still being within Section 8 guidelines.
Are 10.7% renters and N/A-day days on market (DOM) enough demand?
Yes: While the percentage of renters at 10.7% is relatively low, the fact that the DOM is not provided suggests that there is steady demand for rental properties. Additionally, the difference between the market rent and FMR indicates that there is a potential for higher occupancy rates among Section 8 tenants.
No: If the DOM were provided and indicated high vacancy rates, it would suggest that demand for rental properties in Hackensack, MN is weak. In this scenario, landlords might want to consider other areas with stronger rental demand.
It Depends: Without a specific DOM figure, it's challenging to assess the exact demand. However, given the low percentage of renters, landlords should investigate further into the local rental market trends and vacancy rates to determine if the demand is sufficient.
In conclusion, if the debt service is covered by the FMR, and the market rent is below the FMR, purchasing a property in ZIP 56452 for Section 8 investment can be profitable. The low percentage of renters makes the demand somewhat uncertain, but the higher FMR compared to market rent provides a margin of safety. Further research into local vacancy rates and rental trends is recommended before making a final decision.
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.