Location: Norman County, MN | Metro: Mahnomen County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
U.S. Census Bureau data (2024)
The ZIP code 56516 is situated in a rural area with a relatively small population of 352 residents. Only 14.0% of the residents are renters, indicating a predominantly owner-occupied community. The median household income stands at a solid $69,250, which suggests a middle-class demographic. However, the lack of data on median home values leaves some ambiguity regarding the overall property valuation in the area.
When it comes to rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,190, while the actual market rent, according to the Census ACS, is slightly higher at $1,281. This indicates that landlords in ZIP 56516 can expect to charge rents above the government-subsidized rates, potentially allowing for better cash flow and profitability.
Given these conditions, ZIP 56516 may be more suitable for a hands-off voucher operator rather than a hands-on value-add buyer. The low percentage of renters and the limited opportunities for increasing rents beyond the FMR suggest that active management strategies might not yield significant returns. Instead, landlords could focus on properties that qualify for Section 8 vouchers, ensuring stable occupancy and steady income streams without the need for extensive property improvements or marketing efforts.
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.