Location: Red Lake County, MN | Metro: Grand Forks, ND-MN MSA
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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $292,189 | 0.35% | F |
| 3BR | $1,410 | $332,580 | 0.42% | F |
| 4BR | $1,690 | $385,697 | 0.44% | F |
U.S. Census Bureau data (2024)
The rental market in Erskine, Minnesota, represented by ZIP code 56535, presents an interesting scenario for both tenants and landlords. The median household income in this area stands at $65,536 according to recent Census data. Considering the market rate for rent is $912, it becomes evident that the average household would need to allocate a significant portion of their earnings towards housing costs.
When comparing the market rate to the federal payment standard for Section 8 vouchers, which is set at $910 for fiscal year 2024, there is little difference in the cost. This means that for landlords, accepting a Section 8 voucher tenant would result in nearly the same monthly income as renting to a cash-paying tenant at the market rate.
In Erskine, 27.3% of the 1,307 residents are renters. This relatively low percentage indicates a smaller pool of potential tenants, intensifying competition among landlords. Given the tight margins between median income and market rent, many households might find it challenging to cover the costs without assistance, making the demand for affordable housing likely high.
The affordability gap in Erskine suggests that landlords who consider accepting Section 8 vouchers could attract a steady stream of tenants who are financially supported by the government. However, landlords should also be aware that voucher holders may have different expectations and requirements compared to cash-paying tenants, potentially affecting the dynamics of property management.
Takeaway: For landlords in Erskine, the decision to accept Section 8 vouchers versus focusing on cash-paying tenants should be based on a balance between securing stable rental income and managing the unique challenges associated with voucher programs. Given the slight overlap in rent amounts and the competitive local market, both strategies could prove effective depending on individual property goals and management preferences.
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.