Location: Becker County, MN | Metro: Becker 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 | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,340 | $251,038 | 0.53% | F |
U.S. Census Bureau data (2024)
The ZIP code 56521 is situated in a small-town neighborhood characterized by a relatively low population of 692 residents. The demographic landscape here is predominantly owner-occupied, with only 18.5% of the housing units being rented out. This indicates a community where homeownership is valued and prevalent. The median household income stands at $68,750, reflecting a middle-class area where residents have stable financial footing. Median home values in the region are notably high at $252,469, suggesting a desirable living environment that attracts those looking for quality housing.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970. However, the current market rent, according to Census ACS data, is significantly lower at $738. This discrepancy between FMR and market rent can be advantageous for landlords participating in the Section 8 program, as they are guaranteed a higher rent rate than the local market average.
The question then arises: is this a suitable location for a hands-off voucher operator or a hands-on value-add buyer? Given the relatively low number of renters and the high median home values, a hands-off approach might be more fitting. Landlords who can secure properties at or near the $738 market rent level will benefit from the guaranteed higher FMR payments without needing to actively manage significant property improvements or engage deeply with the local rental market. For a hands-on value-add buyer, the opportunity may lie in identifying underutilized properties that could be upgraded to command closer to the FMR rates, though such investments would require careful consideration of the local demand and competition.
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.