Location: Otter Tail County, MN | Metro: Otter Tail County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
$980 is the Fair Market Rent (FMR) for ZIP 56538 in metro FY 2026, indicating the rental market's baseline. In contrast, specific real estate listings reveal a range of home prices, with some properties like the one at 610 Springen Ave listed for $185,000. This suggests a potential gap between rental and purchase prices. Another property, 1312 Stony Brook Rd, is priced at $270,000, showing a higher end of the market. The listing at 728 S Woodland Dr is valued at $349,000, reflecting a premium for larger, higher-quality homes in the area. A third example, 228 E Vernon Ave, is offered for $254,000, which aligns closely with the average square footage of homes in the region. Lastly, 740 Springen Ave is listed at $189,000, demonstrating a lower price point for smaller properties.
The presence of multiple real estate listings suggests active buying and selling activity in ZIP 56538. However, the lack of specific market rent, median home value, and other key metrics means investors must rely on individual property valuations and FMR data to gauge the local real estate climate accurately. Given the limited data available, focusing on properties around the FMR could be a prudent strategy for landlords and small-portfolio investors.
Section 8 Verdict: ZIP 56538 offers opportunities for landlords with properties priced near the FMR of $980.
Data Sources: FMR data from HUD (2027).
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.