Location: Otter Tail County, MN | Metro: Otter Tail County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The ZIP code 56587 is situated in a suburban neighborhood characterized by a relatively small population of 1,339 residents. This area is predominantly owned, with only 10.2% of the population renting their homes. The median household income stands at a robust $88,000, indicating a middle-class community with financial stability. The median home value in this ZIP code is $379,717, reflecting the overall affluence and property investment potential of the area.
Transitioning into the economic analysis of rental properties, the Fair Market Rent (FMR) for ZIP 56587 as of metro FY 2026 is set at $970. However, the current market rent, according to the Census ACS, is lower at $836. This discrepancy suggests that there might be opportunities for landlords to slightly increase rents while still remaining competitive within the local market.
Given these factors, ZIP 56587 could be an appealing target for both hands-off voucher operators and hands-on value-add buyers. For those looking to operate without much involvement, the relatively high FMR compared to market rent means that Section 8 vouchers can cover a significant portion of the rent, ensuring steady cash flow. On the other hand, for investors willing to put effort into improving properties, the potential exists to command higher rents closer to the FMR, thereby increasing profitability over time.
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.