Location: Mahnomen County, MN | Metro: Grand Forks, ND-MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
U.S. Census Bureau data (2024)
The ZIP code 56621, with a population of 4,336, has a significant rental market share, with 23.5% of residents being renters. This indicates a moderate presence of potential Section 8 tenants. The median household income in this area is $63,721, which is crucial when evaluating the suitability of the market rent at $755.
The typical rent of $755 represents approximately 18.5% of the median household income, suggesting that it is reasonably affordable for most residents. However, comparing this to the Fair Market Rent (FMR) of $910 for FY 2024, it becomes evident that the market rent is below the FMR, which could be advantageous for landlords seeking to attract tenants with vouchers. The lower market rent means that voucher holders can potentially cover a larger portion of the total rent, making it easier for landlords to find tenants who can meet their rental requirements.
Landlords and small-portfolio investors in ZIP 56621 should anticipate a tenant pool that includes individuals and families who rely on housing assistance such as Section 8 vouchers. These tenants will likely have a combined income that does not exceed 50% of the area's median income, aligning with the eligibility criteria for the program. Given the income levels and the relatively low market rent, these tenants will find the cost of living in the area more manageable compared to other regions with higher rents relative to income.
In summary, ZIP 56621 offers a balanced environment for landlords, with a substantial number of renters and a market rent that is well below the FMR. Landlords can expect to see a mix of tenants, including those utilizing Section 8 vouchers, who are financially capable of maintaining stable tenancies due to the affordability of the rent relative to the local income levels.
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.