Location: Becker County, MN | Metro: Becker County, MN
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $401,531 | 0.28% | F |
| 3BR | $1,470 | $498,359 | 0.29% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 56578 (Rochert, MN) provides a useful snapshot of potential investment returns under government-subsidized housing programs. To begin, we annualize the Fair Market Rent (FMR) for a two-bedroom unit, which is set at $1,050 per month for fiscal year 2026, reflective of the metro area's standards. This translates into an annual rental income of $12,600.
Given the median home value in Rochert, MN, is $392,500, the implied gross yield for a Section 8 property would be approximately 3.2%. This calculation is derived from dividing the annual rental income by the median home value. The formula is as follows: Gross Yield = ($12,600 / $392,500) * 100 = 3.2%.
However, it's important to note that the market rent for this area is listed as N/A, suggesting there is either insufficient data or significant variability in what landlords might charge above the subsidized rate. If market rents were available, they could provide a benchmark for understanding how much higher non-subsidized rents might be compared to the Section 8 rate.
The low renter density of 1.7% indicates that the demand for rental properties in Rochert, MN, is relatively low. This factor could influence the likelihood of maintaining occupancy levels, particularly if there is competition between Section 8 and market-rate rentals. The N/A-day Days on Market (DOM) figure suggests that the time it takes to rent out a property is not well-documented or varies significantly, making it challenging to predict vacancy rates accurately.
In the context of these conditions, the Section 8 scenario offers a stable, albeit modest, gross yield. Given the limited market rent data and the low renter density, it is reasonable to conclude that the Section 8 rate of $1,050 per month is likely to be more consistent and reliable for landlords and small-portfolio investors. While the gross yield of 3.2% may not appear attractive when compared to other investment opportunities, it does provide a guaranteed income stream, which can be valuable in a low-demand rental market.
Investors should consider these factors alongside their own financial goals and risk tolerance. In areas with such low renter density, the stability offered by Section 8 may outweigh the potential for higher yields through market-rate rentals, especially considering the difficulty in predicting market rent and occupancy rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.