Location: Hubbard County, MN | Metro: Cass County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 56461, which encompasses Laporte, Minnesota, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,030, while the Census ACS data indicates that the current market rent stands at $988. This means there is a $42 difference, or approximately a 4.27% gap, between what the government deems as fair market rent and what the market is currently offering.
In the context of Laporte, MN, where only 7.9% of the population are renters, and the median home value is $306,051, landlords and small-portfolio investors might be inclined to focus on owner-occupied properties. However, the presence of Section 8 voucher holders can still be a lucrative opportunity. Given that the FMR exceeds the market rent, landlords who accept Section 8 vouchers can benefit from a higher guaranteed rental income compared to the open-market rates. This makes it a yield play for those willing to navigate the complexities of the Section 8 program.
The median income in Laporte, MN, is $78,188, which suggests that many residents might find it challenging to afford market-rate rents without assistance. For landlords, accepting Section 8 vouchers ensures a steady stream of income, albeit at slightly below market rates. The cost of housing voucher tenants below open-market rates is minimal, considering the stability and predictability of rental payments. Moreover, the Section 8 program provides a subsidy that covers the difference between the tenant's contribution (typically 30% of their income) and the rent amount, making it a reliable source of income.
In conclusion, despite the small gap between FMR and market rent, the benefits of increased occupancy stability and guaranteed income make Section 8 a viable option for landlords in Laporte, MN. The analysis is anchored in the local context, where the relatively low percentage of renters and high median home values indicate a niche market for rental properties, especially those supported by housing vouchers.
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.