Location: Otter Tail County, MN | Metro: Grant County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The real estate market in ZIP code 56590 presents a nuanced picture for both landlords and small-portfolio investors. With a median home value set at $222,802, it's clear that the area maintains a stable base for property values. The absence of percentage reductions in listings and the unspecified median days on market (DOM) suggest a balanced market where neither buyers nor sellers hold significant leverage over pricing. This equilibrium implies that maintaining current asking prices will likely continue to be viable over the next 12-24 months.
On the rental side, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is projected to be $1,000, while the current market rate based on Census ACS data is $850. This indicates a potential upward trend in rental rates, which could benefit landlords who can keep their properties well-maintained and competitive. As the gap between the FMR and actual market rates narrows, it signals that rental income could increase, providing a steady stream of cash flow for those invested in the area.
For long-term investors considering the appreciation potential of properties in ZIP 56590, the setup suggests moderate growth. The stability in home values combined with the expected rise in rental rates points towards a market that will likely see gradual increases rather than sharp fluctuations. This scenario supports a buy-and-hold strategy, especially for those looking to capitalize on rental income and long-term property appreciation.
To summarize, the current median home value, the balance in the market dynamics, and the anticipated growth in rental rates all point to a favorable environment for landlords and small- portfolio investors. Maintaining properties to meet the rising rental standards and holding onto them for the long term can lead to solid returns, both in terms of rental income and property value appreciation.
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.