Location: Itasca 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 | $790 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $184,182 | 0.56% | F |
| 3BR | $1,270 | $222,710 | 0.57% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 56630 in Minnesota, set at $990 for metro fiscal year 2026, is the payment standard for Section 8 rentals. This means that if you participate in the Section 8 program, the government will pay up to $990 per month for a rental unit in this area. However, this does not represent the actual rent you can charge tenants; it's the maximum amount the government will subsidize.
To put this into perspective, the average rent in ZIP 56630 is currently $748 according to recent Census data (American Community Survey). The FMR is higher than the average rent, which is beneficial for landlords because it ensures a stable income that is above the market rate. This difference indicates that there is a subsidy in place to make housing more affordable for low-income residents.
The rental share in this area is 22.3%, meaning that slightly more than one-fifth of households are renters. This suggests a moderate demand for rental properties, particularly those that qualify under the Section 8 program. Given the FMR and the subsidy structure, there should be a steady flow of potential tenants interested in your property if you decide to offer it through Section 8.
If you're looking to acquire a property in this ZIP code, the median home value is around $191,963. This figure represents the typical price you might expect to pay for a property, though individual prices can vary widely based on condition, location, and other factors. With an FMR of $990, you can expect a reasonable return on investment over time, especially if you factor in the lower vacancy rates typically associated with subsidized housing.
Before making a final decision, verify that the property meets all local housing quality standards known as Housing Quality Standards (HQS). These standards ensure that the property is safe, decent, and sanitary for tenants. Failure to meet these standards can result in the property being ineligible for the Section 8 program, even if it would otherwise be a good investment.
In summary, offering a rental property in ZIP 56630 through the Section 8 program means you'll receive a guaranteed payment of up to $990 per month, which is higher than the current average rent of $748. With a moderate renter share and a median home value of $191,963, it presents a viable option for small-portfolio investors. Ensure your property meets HQS to avoid any eligibility issues.
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.