Location: Otter Tail County, MN | Metro: Otter Tail County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
The ZIP code 56567 stands out within its county due to several key factors: a resident population of 3,367, with 22.1% of them renting their homes. The median household income here is $72,500, while the median home value is notably higher at $268,295. This suggests that homeownership is a significant aspect of the local economy, and property values are relatively robust.
When it comes to voucher economics, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, whereas the actual market rent, according to the Census Bureau's American Community Survey (ACS), is lower at $755. This discrepancy indicates that landlords participating in the Section 8 program can expect to receive a slightly higher rental rate than the current market average, which could be beneficial for maintaining cash flow and covering expenses.
The data signature for ZIP 56567 reads as stable. With a median income that is reasonable compared to the median home value, the area shows signs of financial health among its residents. The relatively high median home value also points towards a steady demand for homeownership, which can be a positive indicator for long-term real estate investment. However, the lower percentage of renters and the gap between FMR and market rent suggest that the area may not be heavily reliant on rental assistance programs, which could limit the number of potential tenants who qualify for Section 8 vouchers.
For landlords and small-portfolio investors considering the Section 8 program in ZIP 56567, the stability of the local economy and the higher-than-market FMR rates present an opportunity for consistent returns. Yet, it is important to recognize that the pool of eligible tenants might be smaller than in areas with a higher percentage of renters relying on housing assistance.
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.