Location: Otter Tail County, MN | Metro: Grant County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
U.S. Census Bureau data (2024)
The ZIP code 56531, located within Otter Tail County, MN, presents a unique profile when compared against typical ZIP codes in the same county. With a Fair Market Rent (FMR) set at $1,090 for the fiscal year 2026, it stands above the market rent figure of $773, indicating a higher subsidized rental rate than what the market naturally demands. This discrepancy suggests that landlords operating in 56531 could potentially benefit from participating in the Section 8 program, as they would receive higher rents relative to the local market conditions.
The median home value in 56531 is $200,167, which is a significant figure but does not necessarily indicate whether it is above or below average for the entire county without comparative data. However, the 24.8% share of renters in the area points towards a notable presence of rental properties, which can be an indicator of demand for affordable housing solutions. When combined with the lower market rent of $773, this high renter share suggests that there is a substantial portion of the population relying on rental housing, including those who might benefit from Section 8 assistance.
To determine if 56531 is a value pocket, a mid-tier neighborhood, or a premium sub-market, we must consider the interplay between FMR, market rent, home value, and renter share. The FMR being notably higher than the market rent, along with a relatively high renter share, indicates that this ZIP code could be considered a value pocket for Section 8 participants. Landlords here could find it advantageous to offer their properties under the Section 8 program, as it could help fill vacancies and stabilize income in an area where market rents are lower.
However, the median home value of $200,167 places 56531 in a middle ground, neither exceptionally low nor high compared to typical values. This suggests that while it may not be the most expensive area within the metro, it also isn't the least costly, making it a balanced choice for both investors and tenants seeking stable, affordable housing options.
In summary, ZIP 56531 appears to be a value pocket within the Otter Tail County, MN metro, particularly appealing to landlords interested in Section 8 participation due to the favorable rent subsidy rates. Its high renter share and lower market rent suggest strong potential for demand among subsidized housing tenants, positioning it as a strategic investment opportunity.
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.