Location: Wadena 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 | $850 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $182,871 | 0.63% | D |
| 3BR | $1,450 | $232,958 | 0.62% | D |
| 4BR | $1,740 | $279,559 | 0.62% | D |
U.S. Census Bureau data (2024)
The ZIP code 56479, located in Staples, MN, presents an interesting balance between yield and stability for real estate investors. On the yield axis, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,170, while the local market FMR stands at $839. This indicates a moderate potential for rental income, especially when compared against the average home value of $211,383. The gap between the metro and market FMR suggests that there is room for price adjustment to attract tenants, but it also implies that investors should be cautious about setting rents too high, as they might exceed the local affordability threshold.
Regarding stability, the ZIP code has a renter population of 24.7%, which is relatively low and could indicate higher competition for rental properties. However, the median household income of $59,920 provides a solid economic foundation, supporting the ability of residents to pay rent. Despite the lack of data on the number of days on market (DOM), the income figure suggests a stable financial environment for tenants, reducing the risk of default and vacancy.
Given these factors, ZIP 56479 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The income levels support a consistent flow of rental payments, and the relatively low renter percentage hints at a competitive market where maintaining occupancy requires careful management and possibly moderate pricing. While the yield is not exceptionally high due to the lower market FMR, the stability derived from the income levels makes it a reliable investment option for those seeking predictable returns over time.
To summarize, the key figures driving this classification are the FMRs of $1,170 for the metro area and $839 for the local market, alongside the median home value of $211,383 and median household income of $59,920. These numbers suggest a market that is best suited for investors who prioritize long-term, steady cash flows over short-term, high-yield investments.
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.