Location: Wadena County, MN | Metro: Otter Tail 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 | $710 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,280 | $212,278 | 0.6% | D |
U.S. Census Bureau data (2024)
The market in ZIP code 56482 presents a dynamic environment where the balance between supply and demand is evident through several key metrics. The Fair Market Rent (FMR) for the area stands at $980 for the fiscal year 2026, while the actual market rent, according to the Census ACS, is $731. This discrepancy suggests that the rental market is currently below the FMR, indicating that demand might not be fully meeting the supply of rental units at the higher FMR levels.
A low price-cut share of 0.2% points to a relatively stable housing market where few sellers are forced to lower their asking prices. However, the lack of data on days on the market (DOM) makes it challenging to draw a comprehensive conclusion on the speed at which homes are selling. Despite this gap, the median home value of $209,710 provides a snapshot of the overall housing affordability in the region, which can influence both rental and sales markets.
The 31.6% renter share is significant as it indicates a substantial portion of the population prefers or is compelled to rent rather than own. This high percentage of renters could imply ongoing housing pressure, particularly if these individuals are seeking affordable options. Over time, this trend could lead to increased demand for rental properties, especially those priced competitively around the current market rent of $731.
In summary, ZIP 56482 appears to be a market where supply slightly exceeds demand in terms of rental pricing, but there's a notable presence of renters that could signal future demand pressures. Landlords and small-portfolio investors should focus on properties that offer good value and align with the current market rent to capitalize on this balance.
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.