Location: Wadena County, MN | Metro: Becker 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 | $750 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $276,696 | 0.39% | F |
| 3BR | $1,370 | $327,936 | 0.42% | F |
| 4BR | $1,510 | $354,498 | 0.43% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP 56464, which includes Menahga, MN, is set at $1,050 for the metro area fiscal year 2026. This figure represents the payment standard under the Section 8 Housing Choice Voucher program, meaning that voucher holders will be able to use their vouchers to cover up to $1,050 in rent for a unit that meets the program's criteria. However, this does not directly dictate the amount you can charge as rent.
To contextualize this, consider that the average rent in Menahga, MN, as reported by the Census Bureau's American Community Survey (ACS), is $841. The difference between the FMR and the local average rent indicates that voucher holders could potentially afford higher rent rates than the market average, making Section 8 rentals viable even if priced slightly above the typical local rate.
The 18.2% share of renters in the area suggests a moderate demand for rental properties. While not extremely high, it indicates that there is a significant portion of the population who rely on rental housing, creating a steady pool of potential tenants for your property.
When acquiring a new rental property in Menahga, the median home value stands at $268,799. This figure helps you understand the typical price range for homes in the area, guiding your investment decisions. It’s important to note that this is the median value, so some properties might be available below this amount, especially if they need renovations or are in less desirable locations.
Before proceeding with a Section 8 rental, one critical step is to verify that the property meets all the necessary requirements for the program. This includes ensuring the property complies with the Housing Quality Standards (HQS) established by the Department of Housing and Urban Development (HUD). These standards ensure that the property is safe, decent, and sanitary for residents.
In summary, the $1,050 FMR allows you to participate in the Section 8 program without necessarily setting your rent at the local average of $841. With an 18.2% renter share, there is a consistent demand for rental units, and the acquisition cost of around $268,799 gives you a benchmark for property values. Ensure your property meets HUD's HQS to avoid any issues once you decide to take the plunge into Section 8 rentals.
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.