Section 8 Fair Market Rent (FMR) for ZIP 56474 - 2027

Location: Crow Wing County, MN | Metro: Cass County, MN

Investment Score for ZIP 56474

F
Monthly Rent (2BR)
$1,010
Median Price (2BR)
$247,626
1% Rule
0.41%
Annual Yield
4.89%

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$1,320
4 Bedrooms$1,630
5 Bedrooms$1,891
6 Bedrooms$2,118
7 Bedrooms$2,287
8 Bedrooms$2,401

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,010 $247,626 0.41% F
3BR $1,320 $341,482 0.39% F
4BR $1,630 $396,606 0.41% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
4,475
Median Household Income
$59,922
Housing Units
2,861
Renter Percentage
16.7%
Occupancy Rate
67.0%
Renter Occupied
321

The Fair Market Rent (FMR) for ZIP 56474, Pine River, MN, in fiscal year 2026 is set at $970. This figure represents the maximum amount the U.S. Department of Housing and Urban Development (HUD) will pay to cover a tenant's portion of rent under the Section 8 housing program. It is not the rent you will charge your tenants directly.

In contrast, the average rent for the area, according to the Census American Community Survey (ACS), is $830. This lower figure reflects the typical market rate for rentals in Pine River. The difference between the FMR and the local average rent means that landlords participating in Section 8 can expect to receive a higher subsidy per unit than the local average might suggest, potentially leading to a better financial outcome.

The 16.7% of the population who are renters indicates a moderate demand for rental properties in Pine River. While not overwhelming, this percentage suggests there is a steady need for affordable housing options, which could be filled by a Section 8 rental property.

If you're looking to acquire a rental property in this area, the median home value is approximately $277,659. This figure gives you an idea of the investment required to enter the Pine River rental market. Given the FMR and the local average rent, the potential returns on a Section 8 rental property can be favorable, especially when compared to the acquisition cost.

Before proceeding with a Section 8 rental in Pine River, it is crucial to verify that the property meets HUD's minimum property standards. These standards ensure that the property is safe, decent, and sanitary for tenants. Compliance with these standards is mandatory for participation in the Section 8 program, and failing to meet them can result in penalties or disqualification from the program.

In summary, the FMR of $970 provides a benchmark for the subsidy you can expect from HUD. With a local average rent of $830 and a 16.7% renter share, there is a reasonable demand for rental units. For an initial investment of around $277,659, a Section 8 rental can be a viable option. Just make sure the property meets HUD's standards to avoid any issues down the line.

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.