Location: Koochiching County, MN | Metro: Itasca County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The ZIP code 56639 is situated in a small, rural neighborhood characterized by a tight-knit community and a modest population size of 359 residents. The area has a relatively low percentage of renters at 17.3%, indicating that homeownership is prevalent among the local populace. With a median household income of $30,625, it's clear that the residents here have limited financial resources, which could impact their ability to afford higher rents. The median home value stands at $180,262, suggesting that while property values are not exceedingly high, they do represent a significant investment for many local families.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,150. This figure, established by HUD for Section 8 housing, provides a benchmark against which market rents can be measured. According to Census ACS data, the actual market rent in ZIP 56639 is slightly lower at $1,104. This close alignment between FMR and market rent suggests that the area is well-regulated and that rents are unlikely to fluctuate significantly outside of the established parameters.
Given these economic conditions, ZIP 56639 would suit a hands-off Section 8 voucher operator. The stable rent environment and the low percentage of renters indicate a market where demand for subsidized housing is steady but not overwhelming. For those interested in a more active role, such as a hands-on value-add buyer, the opportunity may be limited due to the already reasonable market rents and the potential challenges in finding enough tenants who qualify for the Section 8 program given the low rental population. However, with the median income being lower than the median home value, there is a segment of the population that might benefit from affordable rental options, making it a viable option for those willing to engage in property management and maintenance.
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.