Location: Koochiching County, MN | Metro: Koochiching County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
The median income in ZIP code 56653 stands at $74,583, which is significantly lower than the Fair Market Rent (FMR) standard of $1,110 set for metro areas in fiscal year 2026. This disparity highlights a substantial affordability gap for renters in the area. At a market rate of $657 (as per the Census American Community Survey), a household could theoretically afford the rent without financial strain, assuming they allocate a reasonable portion of their income towards housing costs.
However, the actual cost of living in the area, combined with other expenses such as utilities and maintenance, might push the total rental burden closer to the FMR of $1,110. Given that only 18.5% of the 1,239 residents are renters, landlords face stiff competition for this limited pool of tenants. The scarcity of renters means that those who do choose to rent must be carefully considered in terms of their ability to pay and the type of rental assistance they may require.
The takeaway for landlords considering whether to accept vouchers versus relying on cash-paying tenants is clear: while voucher recipients may provide a steady and government-backed source of income, the lower market rate of $657 suggests that there is a segment of the population that could potentially afford higher rents without assistance. Landlords should weigh the benefits of guaranteed payments against the possibility of attracting higher-paying tenants who do not need vouchers.
To maximize profitability, landlords in ZIP 56653 might consider a mixed strategy, where they offer a range of properties that cater both to voucher holders and those able to pay the FMR. This approach allows landlords to capture the benefits of both markets, ensuring a stable tenant base while also capitalizing on the potential for higher rents among those who can afford it.
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.