Location: Cass County, MN | Metro: Cass 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 | $730 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $367,512 | 0.27% | F |
| 3BR | $1,340 | $502,091 | 0.27% | F |
| 4BR | $1,700 | $603,673 | 0.28% | F |
U.S. Census Bureau data (2024)
The ZIP code 56655, located in Longville, MN within the Cass County metro area, presents a unique profile when compared against other ZIP codes in the same county. The Fair Market Rent (FMR) for 56655 stands at $970 for fiscal year 2026, which is higher than the market rent of $813. This suggests that the government's estimate of what is considered fair rent is slightly above what the market currently dictates.
The median home value in ZIP 56655 is $364,780, which is relatively standard for the region. However, the renter share of the population is 6.4%, indicating a smaller proportion of residents who prefer renting over owning. In comparison to typical ZIP codes in Cass County, this lower renter share might suggest that 56655 is not heavily favored by renters. Yet, the divergence between the FMR and market rent, coupled with the renter share, points towards a potential value pocket for landlords and small-portfolio investors interested in Section 8 housing.
A key factor in identifying a Section 8 sweet spot is the presence of a high renter share with below-average home values, as it often signifies an area where rental properties are more sought after. Although the home value in 56655 is not below average for the county, the higher FMR relative to market rent can still be beneficial for landlords participating in the Section 8 program. This is because landlords can potentially receive higher subsidies per unit, making the investment more attractive despite the slightly higher property costs.
In summary, ZIP 56655 appears to be a mid-tier neighborhood within the Cass County metro, offering a balance between moderate home values and slightly elevated FMRs compared to market rents. Its characteristics make it a reasonable choice for investors looking to enter the Section 8 market, particularly those willing to invest in a slightly pricier but potentially more lucrative sub-market.
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.