Location: Koochiching County, MN | Metro: Koochiching County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
ZIP 56627, located in Koochiching County, Minnesota, represents an ideal cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, while the market rent stands at $566. This creates a significant spread of $404 per unit, which translates into substantial positive cash flow.
The median home value is not available for this ZIP code, but the lack of a specific figure does not diminish the attractiveness of this location as a cash-flow anchor. Landlords can rely on the guaranteed rental income from the Section 8 program, which ensures that units are rented at a fixed rate, providing stability and predictability.
Although the appreciation potential in ZIP 56627 is not quantifiable due to the absence of percentage price-cut share and days on market (DOM) data, the primary focus here is on cash flow rather than capital gains. The positive spread between the FMR and market rent makes this ZIP code a reliable source of steady income.
The renter share in ZIP 56627 is 19.5%, indicating a moderate demand for rental properties. However, the median income of $36,500 suggests that many residents may qualify for the Section 8 program, further supporting the strategy of using this ZIP code as a cash-flow anchor.
In summary, ZIP 56627 should be considered a cash-flow anchor within a Section 8 portfolio strategy. The guaranteed income from the FMR, coupled with the lower market rent, provides a solid foundation for generating consistent positive cash flow, which is crucial for landlords and small-portfolio investors.
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.