Location: Wilkin County, MN | Metro: Fargo, ND-MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
To strategically incorporate ZIP 56514 into a Section 8 portfolio, one must consider the financial metrics that define the area's suitability for different investment goals. For the fiscal year 2024, the Fair Market Rent (FMR) for ZIP 56514 is set at $910. This figure is crucial for landlords participating in the Section 8 program, as it dictates the maximum rental amount they can charge.
The current market rent in ZIP 56514 stands at $866, which is lower than the FMR. The spread between the FMR and the market rent is $44, indicating that landlords who participate in Section 8 could potentially earn a higher rent compared to the market average. This makes ZIP 56514 a strong candidate for a cash-flow anchor within a Section 8 portfolio strategy. Landlords can secure a steady income stream that exceeds the local market rate, thereby enhancing their overall portfolio performance.
ZIP 56514 does not present itself as an appreciation play, given that there is no specific percentage noted for the price-cut share or days on market (DOM). These factors would typically indicate the potential for property values to rise over time, but the lack of such data suggests that appreciation is not a primary driver in this ZIP code.
However, the ZIP code offers some diversification benefits. With a renter share of 14.0%, there is a notable portion of the population that relies on rental housing. Additionally, the median household income of $100,845 is relatively high, suggesting that residents have the financial capacity to afford higher rents or maintain properties in good condition, which can be advantageous for long-term stability.
Despite the median home value being $299,958, which might seem high, the combination of a favorable FMR-to-market rent spread and the economic strength of the area makes ZIP 56514 most suitable as a cash-flow anchor. Landlords should focus on leveraging the guaranteed rental income from the Section 8 program, which is above the typical market rate, to ensure a consistent and reliable revenue source within their portfolio.
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.