Location: Beltrami 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 | $1,230 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,230 | $284,165 | 0.43% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 56647 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $990 per month for fiscal year 2026. This figure is specific to this ZIP code, meaning it reflects the rental value assessed for this particular area.
In contrast, the local market rent for a similar two-bedroom unit is recorded at $864 per month according to the Census ACS (American Community Survey). This discrepancy highlights the premium that landlords can receive through the Section 8 program compared to the general market conditions.
When a landlord participates in the Section 8 program, the voucher pays a significant portion of the rent directly to the landlord. The tenant is responsible for paying approximately 30% of their adjusted income towards rent. This amount varies depending on the individual tenant's income but is capped at the SAFMR level. Additionally, there are utility allowances which vary by household size and location.
To illustrate, if a tenant's share of the rent is calculated to be $300 based on their income, the remaining $690 would be covered by the Housing Authority up to the SAFMR limit of $990. Therefore, the landlord receives the difference between the tenant's share and the SAFMR, ensuring a stable income stream that is protected against non-payment risks.
Utility allowances are also provided to help cover the cost of utilities such as electricity, water, and gas. These allowances are determined by the Housing Authority and are designed to help low-income families afford these essential services. In ZIP 56647, the utility allowance for a two-bedroom apartment would be factored into the overall reimbursement to ensure the total payment does not exceed the SAFMR of $990.
The typical reimbursement gap or surplus in ZIP 56647 for a two-bedroom apartment is a surplus of $126 per month. This surplus occurs because the SAFMR is higher than the local market rent, providing landlords with an incentive to participate in the Section 8 program. It ensures that they receive a higher rent than the average market rate, thus offering a financial advantage over standard rental agreements.
For landlords and small-portfolio investors considering participation in the Section 8 program within ZIP 56647, the economic benefits are clear. With a guaranteed rent payment that exceeds the local market rate, the program offers a secure and potentially more lucrative option for property management.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.