Location: Crow Wing County, MN | Metro: Cass 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 | $830 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $462,324 | 0.26% | F |
| 3BR | $1,450 | $630,867 | 0.23% | F |
| 4BR | $1,720 | $810,960 | 0.21% | F |
| 5BR | $1,995 | $1,243,492 | 0.16% | F |
U.S. Census Bureau data (2024)
The analysis for Section 8 real estate in ZIP code 56468, located in Nisswa, Minnesota, reveals a significant opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,170, while the actual market rent based on Census ACS data is $958. This creates a positive gap of $212, or approximately 18%, in favor of the FMR.
The disparity between these two figures means that landlords can receive higher rental payments through Section 8 vouchers compared to what they would typically earn from market-rate tenants. Given that only 5.6% of the population in Nisswa are renters, the competition for rental properties is relatively low, making it easier for landlords to attract voucher tenants. The median home value of $605,744 and median income of $100,300 suggest a community where homeownership is more common, and thus, rental properties are valuable assets for those who qualify for assistance.
The higher payment from Section 8 vouchers translates directly into increased yields for landlords. With a guaranteed income that exceeds the local market rate, landlords can enjoy better cash flows and potentially higher returns on investment. Additionally, the stability provided by the federal housing assistance program reduces the risk of tenant turnover and non-payment, which are common concerns in the rental market.
In summary, the gap between the FMR and the market rent in ZIP 56468 makes it an attractive yield play for landlords and small-portfolio investors. The financial benefits of accepting Section 8 vouchers, combined with the local context of low renter competition and high home values, present a compelling case for engaging in this type of rental investment.
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.