Location: Wadena County, MN | Metro: Becker County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
The ZIP code 56477, located within Wadena County, MN, presents a unique scenario when compared to typical ZIP codes in the same county. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,090. However, the actual market rent in ZIP 56477 is significantly lower at $693. This discrepancy suggests that 56477 could be considered a value pocket within the Wadena County, MN metro.
The median home value in ZIP 56477 stands at $248,857, which is notably lower than what might be expected in a premium sub-market. Given the lower market rent and home values, it's evident that this ZIP code offers more affordable housing options compared to the broader metro area.
Additionally, ZIP 56477 has a renter share of 20.3%, indicating a moderate presence of renters. When analyzing the characteristics of a potential Section 8 sweet spot, the combination of a relatively high renter share with below-average home values is a key indicator. In this case, while the renter share isn't exceptionally high, the lower market rent and home values do support the notion that 56477 could be an attractive location for Section 8 investments.
To summarize, ZIP 56477 appears to be a value pocket within the Wadena County, MN metro. It offers lower market rents and home values, making it an economically viable option for landlords and small-portfolio investors looking to capitalize on the Section 8 program. The data points towards a potentially favorable investment climate due to the affordability of housing and the presence of renters, even if the latter is not extremely pronounced.
Data Sources: FMR data from HUD (2027). 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.