Location: Morrison 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 | $800 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $312,165 | 0.36% | F |
| 3BR | $1,460 | $355,986 | 0.41% | F |
| 4BR | $1,830 | $428,683 | 0.43% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 56473, which includes Pillager, MN, stands at $85,950. Given the market rate for rent at $1,114 according to the Census ACS, a household in this area faces a significant challenge in affording market-rate housing. To put this into perspective, the monthly rent at $1,114 would consume approximately 14.8% of the median annual income when divided by 12 months.
However, the situation becomes more favorable for renters when considering the Housing Choice Voucher Program. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $990, which is below the market rate. This means that voucher holders can find housing that fits within their budget, reducing the financial strain on households. At $990, the rent would account for about 13.2% of the median annual income, making it more affordable compared to the market rate.
The rental market in Pillager is relatively small, with only 12.2% of the 3,518 population being renters. This translates to roughly 429 rental units occupied. Given the small number of renters, the competition among landlords for tenants can be intense. Landlords must consider both the attractiveness of market-rate rents and the benefits of accepting vouchers.
The affordability gap between the market rate ($1,114) and the FMR ($990) means that landlords who accept vouchers might have an easier time securing tenants. However, those who choose to charge market rates should be prepared for a competitive landscape where they may need to offer amenities or lower prices to attract renters. The decision to accept vouchers versus relying on cash-paying tenants should be made based on the landlord's financial goals and the local rental market dynamics.
Takeaway: For landlords and small-portfolio investors in ZIP 56473, the choice between voucher and cash-pay strategies hinges on balancing tenant demand against potential income. Accepting vouchers can ensure steady occupancy but at a slightly lower rate than the market average. Landlords who opt for market-rate rents must be strategic in attracting the limited pool of renters, possibly through competitive pricing or added value in their properties.
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.