Location: Otter Tail County, MN | Metro: Otter Tail County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
The ZIP code 56533 is situated in a rural neighborhood characterized by a relatively small population of 286 residents. The area has a low rental rate, with only 6.9% of the population being renters, indicating a predominantly owner-occupied community. The median income in this region stands at $67,250, which is modest but reflective of a stable economic environment. Additionally, the median home value is $211,000, suggesting that homeownership is accessible to many within the community.
When it comes to the economics of renting in ZIP 56533, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,280. However, market rent data is currently unavailable, making it difficult to compare the actual rents charged with the FMR. This lack of current market data could be due to the low rental activity in the area, further emphasizing the owner-occupied nature of the community.
Given these conditions, ZIP 56533 might be better suited for a hands-off voucher operator rather than a hands-on value-add buyer. The limited number of renters suggests a smaller pool of potential tenants, and the reliance on Section 8 vouchers means that landlords will receive a steady stream of rent payments, albeit at a fixed rate. For those interested in maximizing returns through active management and property improvements, this area presents fewer opportunities due to the modest median income and home values. Instead, a passive approach focused on maintaining properties and collecting guaranteed rental assistance payments would likely be more effective.
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.