Location: Itasca County, MN | Metro: Itasca County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
The ZIP code 56637 represents a unique area characterized by a small population of 153 residents. Notably, there are no renters recorded within this community, indicating that it is predominantly composed of homeowners. The median household income stands at $58,750, suggesting a middle-class demographic. However, specific data regarding the median home value is not available, which could imply that the housing stock is relatively uniform or that there is limited variability in property values.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $1,150. This figure serves as a benchmark for rental costs but, given the lack of renters in ZIP 56637, it does not directly reflect the local market conditions. The absence of market rent data further underscores the rarity of rental properties in this area, making it challenging to compare actual rental prices against the FMR.
Considering the characteristics of ZIP 56637, it is evident that the area is unsuitable for a hands-off Section 8 voucher operator. The lack of rental units means there would be minimal opportunities for such an investor to manage properties through the voucher program. Instead, the area might appeal more to a hands-on value-add buyer who is willing to purchase existing homes or develop new ones to cater to potential future rental demand. Given the middle-class income levels and the absence of market rent data, there is potential for creating rental properties that could attract tenants eligible for Section 8 assistance, especially if the buyer can offer units priced competitively around the $1,150 FMR threshold.
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.