Section 8 Fair Market Rent (FMR) for ZIP 56633 - 2027

Location: Hubbard County, MN | Metro: Beltrami County, MN

Investment Score for ZIP 56633

F
Monthly Rent (2BR)
$1,110
Median Price (2BR)
$226,622
1% Rule
0.49%
Annual Yield
5.88%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$790
1 Bedroom$850
2 Bedrooms$1,110
3 Bedrooms$1,440
4 Bedrooms$1,850
5 Bedrooms$2,146
6 Bedrooms$2,404
7 Bedrooms$2,596
8 Bedrooms$2,726

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,110 $226,622 0.49% F
3BR $1,440 $294,900 0.49% F
4BR $1,850 $351,519 0.53% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
4,802
Median Household Income
$67,981
Housing Units
2,523
Renter Percentage
29.8%
Occupancy Rate
60.8%
Renter Occupied
458

Cass Lake, MN, located in ZIP code 56633, stands out due to its unique demographic and economic characteristics. With a population of 4,802, it has a rental rate of 29.8%, indicating a significant portion of residents who are likely to rely on housing assistance programs such as Section 8 vouchers. The median household income in Cass Lake is $67,981, which is relatively modest compared to the median home value of $234,333, suggesting that homeownership may be challenging for many local residents.

The economics of Section 8 vouchers in Cass Lake are particularly noteworthy. The Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $1,060, whereas the current market rent, according to Census ACS data, is $824. This disparity means that landlords accepting Section 8 vouchers can expect higher rents than the current market average, making it an attractive option for property owners looking to maximize their returns.

Given the data, Cass Lake's real estate market appears to be stable. The median income and home values suggest a balanced environment where housing assistance can play a crucial role in maintaining affordability. Landlords and small-portfolio investors should consider the potential benefits of accepting Section 8 vouchers, as they can provide a steady stream of income above the typical market rates.

To summarize, the data signature for ZIP 56633 points to a stable market where Section 8 vouchers offer an opportunity for landlords to secure higher rental incomes. The combination of a moderate median income and a substantial median home value creates a scenario where housing assistance is both necessary and potentially lucrative.

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.