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 | $780 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $390,263 | 0.29% | F |
| 3BR | $1,350 | $492,401 | 0.27% | F |
| 4BR | $1,570 | $632,156 | 0.25% | F |
U.S. Census Bureau data (2024)
The ZIP code 56465, Merrifield, MN, presents an interesting scenario for real estate investment, particularly for those interested in Section 8 properties. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,080, which is significantly lower than the market rent of $1,663. This difference highlights a potential high-yield opportunity for landlords who can secure Section 8 tenants. However, the median home value in this area is $441,023, indicating that the market is not exclusively low-income.
On the stability axis, Merrifield's rental market shows signs of both strength and weakness. With only 4.3% of the population identified as renters, the demand for rental properties is relatively low. The lack of data on days on market (DOM) suggests that there might be limited turnover or activity in the rental sector. Additionally, the average household income of $74,400 implies a moderate economic base, which could support higher rents but also indicates a smaller pool of potential Section 8 tenants.
Given these figures, ZIP 56465 leans towards being a high-yield/low-stability market. The significant gap between FMR and market rent suggests that landlords can potentially achieve higher yields by attracting Section 8 tenants. However, the low percentage of renters and moderate income levels imply that the market may not offer the same level of stability as areas with higher concentrations of renters and lower income levels.
To summarize, the key figures driving this classification are:
Investors should consider these factors carefully when deciding whether to pursue Section 8 investments in Merrifield, MN. While the potential for high yield exists, the market's stability is compromised by the low percentage of renters and moderate income levels.
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.