Location: Wilkin County, MN | Metro: Otter Tail County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56543 within the Wilkin County, MN metro area reveals several key points regarding its viability for Section 8 real estate investments.
The rent math does not work in favor of Section 8. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,100. However, the market rent for this ZIP code is currently not available, indicating that the actual market rates could be higher or lower than the FMR. If the market rent exceeds $1,100, landlords would likely face financial strain due to the discrepancy between what the government pays and what tenants can afford to pay.
Acquisition costs are not clearly defined in the provided data, with the median home value being listed as N/A. Additionally, the average days on market (DOM) and the percentage of homes requiring price cuts before sale are also unavailable. These missing metrics make it difficult to assess the affordability of property acquisitions in this area. Without specific figures, it's challenging to determine if the purchase price aligns well with potential rental income under the Section 8 program.
Tenant demand is modest in ZIP 56543. The total population is 222, with only 6.6% being renters. This low percentage suggests a limited pool of potential Section 8 tenants. Given the small number of residents and the even smaller number who might qualify for the housing assistance program, securing a steady stream of qualified applicants could prove challenging.
Verdict: ZIP 56543 presents a mixed outlook for Section 8 real estate investment. The uncertainty around market rents and acquisition costs poses significant risks. Moreover, the low population and limited renter base suggest a constrained tenant demand. Landlords and small-portfolio investors should proceed with caution, ensuring they thoroughly investigate local market conditions and have contingency plans for financial stability.
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.