Section 8 Fair Market Rent (FMR) for ZIP 56466 - 2027

Location: Todd County, MN | Metro: Cass County, MN

Investment Score for ZIP 56466

F
Monthly Rent (2BR)
$1,010
Median Price (2BR)
$280,477
1% Rule
0.36%
Annual Yield
4.32%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$730
1 Bedroom$780
2 Bedrooms$1,010
3 Bedrooms$1,370
4 Bedrooms$1,600
5 Bedrooms$1,856
6 Bedrooms$2,079
7 Bedrooms$2,245
8 Bedrooms$2,357

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,010 $280,477 0.36% F
3BR $1,370 $339,846 0.4% F
4BR $1,600 $374,447 0.43% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
3,284
Median Household Income
$61,910
Housing Units
2,178
Renter Percentage
14.6%
Occupancy Rate
64.8%
Renter Occupied
206

The ZIP code 56466, located in Motley, Minnesota, stands out within Cass County due to its unique demographic and economic characteristics. With a total population of 3,284 residents, only 14.6% of whom rent their homes, this area has a predominantly owner-occupied housing stock. The median household income in Motley is $61,910, which is relatively modest compared to larger metropolitan areas but sufficient for the local cost of living. The median home value is notably higher at $252,865, reflecting a stable residential market.

Motley's rental market dynamics are significantly influenced by the availability of Section 8 vouchers. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, whereas the Census American Community Survey (ACS) indicates that the typical market rent is around $690. This discrepancy means that landlords accepting Section 8 vouchers can potentially charge a premium above the average market rate, making it an attractive option for those seeking to maximize their rental income.

The data suggests that ZIP 56466 is in a stable phase. Despite the relatively low percentage of renters, the significant difference between the FMR and market rent presents an opportunity for landlords who are willing to participate in the Section 8 program. Given the modest median income and high median home values, the rental market appears to be a niche segment where Section 8 vouchers can play a crucial role in maintaining affordability for tenants while providing a steady revenue stream for property owners.

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.