Location: Hubbard County, MN | Metro: Beltrami 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 | $900 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $2,070 |
| 5 Bedrooms | $2,401 |
| 6 Bedrooms | $2,689 |
| 7 Bedrooms | $2,904 |
| 8 Bedrooms | $3,049 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $960 | $252,242 | 0.38% | F |
| 2BR | $1,250 | $258,103 | 0.48% | F |
| 3BR | $1,500 | $294,430 | 0.51% | F |
| 4BR | $2,070 | $344,890 | 0.6% | D |
| 5BR | $2,401 | $369,234 | 0.65% | D |
U.S. Census Bureau data (2024)
The ZIP code 56601, located in Bemidji, MN, positions itself within the broader context of the Hubbard County, MN metro area. Its Fair Market Rent (FMR) for fiscal year 2026 is set at $1,150, which is lower than the market rent of $1,469. This indicates that while government-subsidized rents are more affordable, the private rental market demands higher rates. The median home value in ZIP 56601 stands at $279,399, suggesting a middle-of-the-road property value within the county.
The renter share in ZIP 56601 is 32.8%, which is notably higher than the average for typical ZIP codes in Hubbard County, MN. This high percentage of renters combined with below-average home values often signifies an attractive location for Section 8 housing programs. The discrepancy between the FMR and market rent also points towards a potential value pocket for landlords and small-portfolio investors looking to capitalize on the subsidy without the overhead of premium-priced properties.
In summary, ZIP 56601 appears to be a mid-tier neighborhood within the Hubbard County, MN metro, characterized by its affordability in subsidized rents and slightly below-average home values. The higher-than-average renter share suggests a strong demand for rental properties, making it a promising area for those interested in Section 8 real estate investment. Landlords and investors can leverage the existing conditions to secure steady income through rental subsidies while benefiting from the robust rental market.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.