Location: Otter Tail County, MN | Metro: Otter Tail County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
ZIP 56527, located in Otter Tail County, MN, should be considered a cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is $990, while the current market rent stands at $390. This significant spread of $600 between the FMR and market rent provides a substantial cushion for landlords and small-portfolio investors who participate in the Section 8 program.
The median home value in ZIP 56527 is $246,259, indicating a relatively stable property market. With a 14.7% renter share, the demand for rental properties is steady, and the median income of $64,375 suggests that tenants are likely to be financially responsible and able to meet their rental obligations.
The data does not provide specific percentages for price-cut shares or days on market (DOM), making it difficult to assess ZIP 56527 as an appreciation play. However, the existing metrics clearly favor it as a cash-flow anchor. Landlords and investors can rely on the consistent income generated from the gap between the FMR and market rent, ensuring steady returns without the volatility associated with appreciation plays.
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.