Location: Beltrami County, MN | Metro: Beltrami County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
The ZIP code 56650 is situated in a tranquil suburban setting with a small population of 831 residents. This area is characterized by a low density of renters, with only 9.9% of the population leasing their homes, indicating a predominantly owner-occupied community. The median household income in this ZIP code stands at $71,667, suggesting a middle-class neighborhood where families have a stable financial footing. The median home value of $188,351 reflects the modest yet comfortable living standards typical of the region.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $990. However, the actual market rent in ZIP 56650, as per Census ACS data, is significantly lower at $650. This discrepancy highlights a potential opportunity for investors interested in Section 8 properties, as the government's rental subsidy rates exceed the local market rates.
Given these factors, ZIP 56650 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability of the Section 8 program combined with the higher FMR compared to the local market rent ensures a steady and reliable income stream without the need for active property management. On the other hand, for value-add buyers, there is an opportunity to increase rents towards the FMR level while still maintaining affordability for tenants, thus improving the property's cash flow and profitability over time.
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.