Location: Otter Tail County, MN | Metro: Otter Tail 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 | $1,050 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,080 | $476,992 | 0.44% | F |
U.S. Census Bureau data (2024)
The ZIP code 56528 presents a dynamic rental market that is closely aligned with federal guidelines. The Fair Market Rent (FMR) set by the government at $1,410 for fiscal year 2026 slightly exceeds the current market rent of $1,359 based on recent Census American Community Survey (ACS) data. This suggests that landlords maintaining rents near the FMR level are likely to see steady occupancy rates without significant pressure to lower prices.
The median home value in the area stands at $386,545, indicating a middle-class neighborhood with homeownership as the predominant form of residence. However, the 11.2% renter share is noteworthy as it points towards a segment of the population facing housing pressures that could translate into long-term rental demand. While this percentage might seem low, it reflects a substantial number of residents who cannot afford homeownership, creating a stable tenant base for landlords.
The lack of data on price-cut share and days on market (DOM) prevents a detailed analysis of the supply-demand balance. Nonetheless, given the proximity of the FMR to the market rent, it's reasonable to infer that demand is strong enough to support current pricing levels, but not so robust as to push rents significantly higher. Landlords should be cautious not to overprice their units, as doing so could lead to vacancies, especially if there are ample rental options available.
In summary, ZIP 56528 is characterized by a rental market that is largely in equilibrium, with a slight indication of upward pressure due to the alignment between FMR and market rent. The modest renter share signals a persistent demand for rental properties, driven by affordability constraints among some residents, making it a viable investment for those looking to enter or expand in the rental sector.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.