Location: Otter Tail County, MN | Metro: Otter Tail County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
U.S. Census Bureau data (2024)
The ZIP code 56524 presents an interesting scenario for both renters and landlords. The median income here stands at $95,938, which is notably high. However, the market rate for rent is listed as N/A, indicating incomplete data. This leaves us with the Fair Market Rent (FMR) standard set at $1,100 for the metro area in fiscal year 2026.
To understand the affordability gap, we must consider the proportion of renters in the area. Only 6.4% of the 694 residents are renters, which means there are approximately 44 renter households. Given the high median income, it would be reasonable to assume that many of these households could afford the FMR without assistance. Yet, the actual market rate being unavailable complicates this analysis.
The FMR of $1,100 is likely a conservative estimate compared to the true rental market value, considering the median income level. This suggests that the majority of renters might be able to pay more than the voucher amount. For landlords, this means there could be a competitive advantage in targeting cash-paying tenants who can afford higher rents, potentially maximizing profits.
However, landlords should also consider the benefits of accepting vouchers. While the payment might be lower, vouchers provide a guaranteed source of income and reduce the risk of non-payment. Additionally, vouchers can help landlords fill vacancies faster, especially in a tight rental market where demand outstrips supply.
Takeaway: Landlords in ZIP 56524 should weigh the benefits of accepting vouchers against the potential for higher rents from cash-paying tenants. High median incomes suggest that cash-paying tenants may be willing to pay above the FMR, but the low percentage of renters indicates limited competition for those tenants. Vouchers offer stability and a reliable tenant pool, making them a viable strategy even in areas with high incomes.
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.