Location: Becker County, MN | Metro: Becker County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
The analysis for ZIP code 56502 in Minnesota reveals a challenging environment for landlords and small-portfolio investors due to the lack of specific data points. The Fair Market Rent (FMR) for a 2-bedroom apartment, as determined by HUD for fiscal year 2026, is set at $1,030 per month. However, without the median home value and market rent figures, it's difficult to provide a precise cap rate or gross yield.
In the scenario where we consider the 2BR FMR of $1,030, annualized, this amounts to $12,360. This figure represents the potential rental income for a property eligible for Section 8 housing assistance. Without knowing the median home value, we cannot calculate the exact cap rate. But, assuming a median home value, the gross yield would be derived from dividing the annual rental income by the median home value. For instance, if the median home value were hypothetically $250,000, the gross yield would be approximately 4.94%. This calculation, however, is purely illustrative due to the absence of actual median home value data.
The market rent being N/A suggests that there might not be sufficient data to determine what constitutes a typical market rent in ZIP 56502. In such cases, the Section 8 FMR becomes a critical benchmark for potential rental income. If the market rent were available and higher than the FMR, the gross yield based on market rent would naturally be higher, assuming the same median home value.
The N/A% renter density and N/A-day Days on Market (DOM) indicate incomplete information regarding the rental market dynamics in this area. A higher renter density typically signals a robust demand for rentals, potentially supporting higher market rents. Shorter DOM periods suggest quicker property turnover, which could also point towards a more favorable rental market. However, without these specifics, it's impossible to make a definitive statement on which scenario is more realistic.
To conclude, while the Section 8 FMR provides a stable and predictable income source, the lack of market rent data makes it hard to compare the gross yields between Section 8 and market-rate scenarios. Landlords and small-portfolio investors should seek additional local market insights to make informed decisions about investment opportunities in ZIP 56502.
Data Sources: FMR data from HUD (2027).
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.