Location: Crow Wing 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 | $890 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $226,635 | 0.56% | F |
| 3BR | $1,540 | $297,912 | 0.52% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 56455, located in Ironton, MN, is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $1,240, while the Census ACS reports the market rent at $1,013. This creates a gap of $227, which represents a 22.4% difference between the two figures.
In this scenario, where the FMR exceeds the market rent, the potential for yield plays becomes evident. Landlords can capitalize on the higher FMR by accepting Section 8 vouchers, thereby receiving a rent amount that is above the current market rate. This means that even though the overall rental market suggests a lower price point, voucher tenants can provide a financial advantage due to the government subsidy. The subsidy effectively bridges the gap, ensuring that landlords receive a rent closer to the FMR rather than the lower market rate.
Ironton, MN has a median home value of $261,057 and a median income of $73,214. With 21.6% of residents being renters, there is a notable demand for affordable housing options. The higher FMR in relation to market rent makes Section 8 vouchers an attractive option for landlords, allowing them to secure a better yield on their investments without setting rents artificially high for the local market.
However, it's important to note that accepting voucher tenants also comes with its own set of costs and considerations. These include administrative overheads, compliance with HUD regulations, and the potential for longer vacancy periods during the voucher approval process. Despite these factors, the financial incentive provided by the FMR makes it a viable strategy for increasing returns in the rental market of Ironton, MN.
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.