Location: Hubbard County, MN | Metro: Hubbard 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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $363,225 | 0.28% | F |
| 3BR | $1,410 | $419,966 | 0.34% | F |
| 4BR | $1,700 | $537,402 | 0.32% | F |
U.S. Census Bureau data (2024)
The ZIP code 56467, located in Nevis, MN, presents an interesting mix of yield and stability characteristics that landlords and small-portfolio investors should consider. On the yield axis, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, which is notably higher than the market rent of $738. This suggests a potential upside if properties can be rented closer to the FMR, indicating a relatively high-yield market.
However, the median home value of $347,035 is a significant factor that influences the overall yield. With a substantial investment required to purchase property in this area, the gap between the FMR and market rent must be analyzed carefully. The difference of $232 between FMR and market rent represents a 31.4% premium over the current market rate, which could be challenging to achieve without significant renovations or improvements that increase a property's desirability.
Moving to the stability axis, the rental market in Nevis, MN, is quite small, with only 6.5% of residents being renters. This low percentage of renters implies limited demand and potentially lower occupancy rates, which negatively impacts stability. Additionally, the lack of data on days on market (DOM) indicates that either there is insufficient activity to provide meaningful trends, or the market is too sparse to reliably measure turnover rates.
The median household income of $74,297 provides some insight into the economic stability of the area. While this figure is not exceptionally high, it does suggest that residents have a reasonable ability to pay rent, which can contribute to a stable cash flow once tenants are secured. However, the low rental population and the inability to secure higher rents due to market conditions mean that the overall stability of this market is questionable.
In conclusion, ZIP 56467 leans towards being a low-stability market with moderate yield potential. The high FMR compared to market rent offers a chance for increased returns but is tempered by the need for substantial investment and the challenge of finding enough tenants willing to pay higher rents. The small rental market and limited data on turnover rates indicate that this area is not well-suited for large-scale investments or those seeking high stability. For investors looking to flip properties, the yield potential is promising, but the stability concerns must be factored into any decision-making process.
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.