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 | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
To understand the economics of Section 8 in ZIP 56666, it's crucial to know the specifics of the SAFMR (Small Area Fair Market Rent) and how it affects landlords and small-portfolio investors. For a two-bedroom apartment in ZIP 56666, the SAFMR for fiscal year 2026 is set at $990. This means that the maximum amount a Section 8 voucher can cover for rent in this specific ZIP code is $990 per month.
The SAFMR is designed to reflect the local rental market conditions, but in this case, the local market rent data is not available. However, we can still walk through how a voucher payment works. A Section 8 voucher typically covers the difference between 30% of a tenant's income and the SAFMR. The tenant is responsible for paying 30% of their adjusted monthly income toward rent, while the voucher program covers the remainder up to the SAFMR limit.
In addition to the base rent, there are utility allowances that can be included in the reimbursement. These allowances vary based on the size of the unit and the number of occupants. For a two-bedroom apartment, the utility allowance is generally around $200-$300 per month, depending on the region's energy costs and the type of utilities included.
Let's consider an example. If a tenant has an adjusted monthly income of $1,500, they would be required to pay 30% of that towards rent, which comes out to $450. The voucher would then cover the remaining amount up to the SAFMR of $990. Therefore, the voucher would reimburse the landlord $540 ($990 - $450).
If we factor in the utility allowance, say at $250, the total reimbursement to the landlord would be $790 ($540 + $250).
This creates a reimbursement gap or surplus for the landlord. Given the SAFMR of $990, if the market rent is higher than $990, the landlord will face a shortfall. Conversely, if the market rent is lower, the landlord will have a surplus. Without specific market rent data for ZIP 56666, it's not possible to calculate the exact gap or surplus. However, landlords should be aware that the reimbursement is capped at the SAFMR, which could mean receiving less than the market rent if they charge above the SAFMR.
In conclusion, for a two-bedroom apartment in ZIP 56666, the typical reimbursement scenario under a Section 8 voucher would result in a landlord receiving a total of around $790 per month, assuming a utility allowance of $250 and a tenant income that requires a 30% contribution towards rent. This figure represents the economic reality of renting to Section 8 tenants in this specific ZIP code, with the potential for a reimbursement gap if market rents exceed the SAFMR.
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.