Section 8 Fair Market Rent (FMR) for ZIP 56552 - 2027

Location: Becker County, MN | Metro: Fargo, ND-MN MSA

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$720
1 Bedroom	$810
2 Bedrooms	$1,010
3 Bedrooms	$1,390
4 Bedrooms	$1,630
5 Bedrooms	$1,891
6 Bedrooms	$2,118
7 Bedrooms	$2,287
8 Bedrooms	$2,401

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

527

Median Household Income

$51,786

Housing Units

212

Renter Percentage

10.6%

Occupancy Rate

93.4%

Renter Occupied

The analysis of ZIP code 56552 reveals a unique blend of yield potential and market stability that may interest both landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $910, which is the primary figure we have to assess rental yields. This FMR stands alone without comparative market or home value data, indicating a reliance on government standards rather than private sector benchmarks.

On the stability axis, ZIP 56552 shows a relatively low percentage of renters at 10.6%. This suggests that the majority of the housing stock is owner-occupied, which can be indicative of a stable community but may also imply limited rental opportunities. Additionally, the median household income is reported at $51,786, providing insight into the financial capacity of the residents. Without specific data on days-on-market (DOM), it's challenging to fully gauge the liquidity of the real estate market in this area.

Given the available data, ZIP 56552 does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. The FMR of $910 provides a clear rental price point, but the lack of detailed market data means that the true yield potential cannot be fully assessed. However, the presence of a significant owner-occupied population and the median income figure suggest a degree of financial stability among residents, which could support consistent rental demand and cash flow.

To make an informed investment decision, consider the following points:

Rental Yield: With an FMR of $910, properties priced below this threshold will likely generate positive cash flow. However, the absence of market rent data makes it difficult to determine if this is a high-yield area relative to other investments.
Market Stability: The 10.6% renter rate and median income of $51,786 indicate a stable demographic. While this limits the speculative upside typical of high-renter-rate areas, it also reduces the risk of vacancy and non-payment.

ZIP 56552 appears to be a middle-ground option, offering moderate yield potential and above-average stability. It is not ideal for aggressive flipping strategies due to the lower renter rate, but it presents a solid opportunity for those seeking reliable, long-term rental income.

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.