Section 8 Fair Market Rent (FMR) for ZIP 56581 - 2027

Location: Norman County, MN | Metro: Norman County, MN

FY 2027 Fair Market Rent Rates

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

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

276

Median Household Income

$53,750

Housing Units

184

Renter Percentage

13.9%

Occupancy Rate

66.3%

Renter Occupied

The ZIP code 56581, located in the heart of rural Minnesota, offers a unique investment opportunity for landlords and small-portfolio investors seeking steady returns without the volatility of urban markets. This area is characterized by its stable population and modest economic growth, providing a reliable environment for rental properties.

The Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $970, indicating a reasonable price point for rental units.
The average market rent, according to Census ACS data, stands at $810, suggesting that there is room for slight increases in rent without deterring potential tenants.
The median home value is not available for this ZIP code, which is common in rural areas where homeownership rates are lower and rental properties dominate the housing stock.
Renters make up 13.9% of the housing market, showing a smaller but still significant demand for rental properties.
The median income in the area is $53,750, which supports the affordability of the current rent levels and indicates that most residents can manage the cost of renting.
Days on Market (DOM) data is not applicable for this ZIP code, likely due to the limited number of property transactions and the focus on long-term rentals rather than frequent turnover.

Investors looking to enter the ZIP 56581 market should consider the moderate rent levels and the support they receive from the local economy. With the FMR slightly above the current market rent, there is potential for modest rent hikes. The smaller renter share suggests that competition among landlords might be less intense, but also implies a need for properties to cater to the specific needs of the local tenant base. Given the median income, tenants are likely to be financially stable, reducing the risk of default. Overall, ZIP 56581 presents a conservative yet promising investment opportunity for those willing to engage in a rural real estate market.

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.