Location: Crow Wing 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 | $830 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $413,136 | 0.28% | F |
| 3BR | $1,470 | $499,674 | 0.29% | F |
U.S. Census Bureau data (2024)
ZIP code 56662, located in Outing, Minnesota, represents a small, primarily owner-occupied neighborhood with a total population of 624. Only 2.1% of residents are renters, indicating a strong preference for homeownership among the local populace. The median household income in this area stands at $69,643, which is above the national average, suggesting a relatively affluent community. Median home values in ZIP 56662 are robust, sitting at $373,863, reflecting the desirability and quality of life in this part of Outing.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,270. However, specific market rent data for ZIP 56662 is currently unavailable, making it challenging to compare the FMR directly against local rental rates. This gap in data means that any analysis must rely heavily on the broader metro context rather than precise local figures.
The low percentage of renters and lack of specific market rent data suggest that this area may not be ideal for a hands-off Section 8 voucher operator. Such an approach typically thrives in areas with higher rental occupancy and where there's a significant demand for subsidized housing. In contrast, a hands-on value-add buyer could find opportunities in ZIP 56662. Given the high median home values and incomes, investing in property improvements and targeting a niche market of renters who might benefit from the Section 8 program could be a viable strategy. The key would be to identify properties that can be upgraded to meet the needs of potential tenants while still aligning with the FMR guidelines. This targeted, active management approach is likely to yield better returns in a neighborhood where homeownership is the dominant trend.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.