Location: Norman County, MN | Metro: Norman County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The market in ZIP code 56548 is characterized by a significant gap between the Fair Market Rent (FMR) set at $970 for the fiscal year 2026 and the actual market rent reported at $679 based on the latest Census ACS data. This suggests that the rental market is currently underpriced relative to government standards, indicating potential upward pressure on rents as the market adjusts to align with the FMR.
A median home value of $167,125 places ZIP 56548 in an affordable range for many buyers, but the lack of data on price-cut share and days on market (DOM) prevents a definitive conclusion on whether supply is outpacing demand or vice versa. However, the relatively low market rent compared to the FMR implies that there might be a stronger demand for rentals, which could be due to affordability concerns or other factors influencing homeownership decisions.
The 15.3% renter share indicates a predominantly owner-occupied community, but it also points to persistent long-term housing pressure. In such a scenario, even a small percentage of renters can exert considerable influence on the rental market's dynamics. With a lower renter population, any increase in demand can lead to rapid changes in rental prices, reflecting the limited availability of rental units.
In summary, ZIP 56548 presents a rental market that is likely to experience growth as it moves towards alignment with the FMR. The dynamics suggest a balance between affordable homeownership and a constrained rental sector, which could become increasingly pressured if the trend towards higher rental rates continues.
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.