Section 8 Fair Market Rent (FMR) for ZIP 56636 - 2027

Location: Itasca County, MN | Metro: Cass County, MN

Investment Score for ZIP 56636

Monthly Rent (2BR)

$1,010

Median Price (2BR)

$247,738

1% Rule

0.41%

Annual Yield

4.89%

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	$710
1 Bedroom	$800
2 Bedrooms	$1,010
3 Bedrooms	$1,330
4 Bedrooms	$1,470
5 Bedrooms	$1,705
6 Bedrooms	$1,910
7 Bedrooms	$2,063
8 Bedrooms	$2,166

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	$1,010	$247,738	0.41%	F
3BR	$1,330	$304,290	0.44%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

4,643

Median Household Income

$61,289

Housing Units

2,943

Renter Percentage

10.9%

Occupancy Rate

63.3%

Renter Occupied

204

Deer River, MN, located in the heart of Aitkin County, is a small community known for its natural beauty and proximity to recreational areas. The local real estate market reflects the area's characteristics, with rental properties being particularly attractive due to their affordability and the town's manageable cost of living.

The Fair Market Rent (FMR) for a two-bedroom apartment in the Deer River metro area for fiscal year 2026 is set at $970.
The actual market rent for similar properties, according to the latest Census American Community Survey (ACS), is $820. This indicates that landlords can potentially increase rents to align with the FMR without significantly deterring tenants.
The median home value in Deer River is $246,556, which is relatively low compared to many other areas in Minnesota, making it a good entry point for first-time investors.
Renters make up 10.9% of the population, suggesting a smaller but stable rental demand. However, this figure also implies that there might be opportunities to attract more renters to the area.
The median household income in Deer River is $61,289, which supports the ability of residents to afford the current rent levels and suggests potential for growth as incomes rise.
The days on market (DOM) data is not available, which could indicate either a well-balanced market where homes sell quickly, or a lack of recent sales activity. Further investigation would be necessary to determine the exact cause.

In summary, Deer River offers a modest yet promising real estate investment opportunity, especially for those looking to enter the rental market. With a current market rent below the projected FMR, there is room for price adjustments that can benefit landlords. The low median home value and steady median income suggest a stable financial environment for both homeowners and renters. Despite the limited renter population share, Deer River's inherent appeal and manageable living costs present a niche market that can be effectively capitalized upon by savvy investors.

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.