Location: Aitkin County, MN | Metro: Aitkin 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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $290,350 | 0.37% | F |
U.S. Census Bureau data (2024)
The ZIP code 56469, located in Palisade, MN, houses a population of 967 residents. With only 5.6% of the population being renters, it is evident that this area is predominantly homeowner-dominated rather than renter-heavy. The median household income stands at $66,042, which provides a basis for understanding the financial capabilities of potential tenants.
A typical market rent of $850 represents approximately 16% of the median household income, indicating that rent consumes a significant portion of the average resident's earnings. This percentage is slightly higher than what is generally considered sustainable, which is around 10-15%. However, when compared to the Fair Market Rent (FMR) of $970 for the fiscal year 2026, the current market rent is lower, suggesting some flexibility in pricing for landlords.
The scarcity of voucher demand in this area is further highlighted by the low percentage of renters. Landlords should anticipate a tenant pool that primarily consists of individuals who can afford market rates without the assistance of government subsidies. These tenants are likely to be employed, with stable incomes that align closely with the local median. They will be seeking affordable housing options that do not exceed their budget constraints, making the $850 market rent a critical factor in attracting them.
In summary, ZIP 56469 is not an ideal location for landlords focusing on Section 8 tenants due to the limited number of renters and the relative scarcity of voucher holders. Instead, landlords should prepare for a tenant base that can pay market rates and is sensitive to the affordability of housing in relation to their income. The expectation is for tenants who value stability and are willing to allocate a substantial share of their earnings towards rent.
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.