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 | $770 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,400 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $323,371 | 0.33% | F |
| 3BR | $1,400 | $389,701 | 0.36% | F |
| 4BR | $1,770 | $470,178 | 0.38% | F |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP code 56672 for Section 8 properties hinges on three key factors: financial feasibility, rental market conditions, and demand stability.
1. Financial Feasibility: The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is $970. This figure needs to be compared against the debt service of a property priced at $305,110. If the monthly debt service, including principal, interest, taxes, and insurance, exceeds $970, then the answer is No. However, if it does not, proceed to the next step.
2. Rental Market Conditions: The average market rent in ZIP 56672 is $896 according to the Census ACS. This is below the FMR of $970. Therefore, landlords can expect Section 8 rents to cover the market rate, making the answer Yes for this criterion. If the market rent were above or equal to the FMR, the situation would be less favorable, but since it's below, it supports investment in Section 8 properties.
3. Demand Stability: In ZIP 56672, 12.2% of residents are renters. The Days on Market (DOM) is listed as N/A, which suggests either insufficient data or that rentals are not frequently listed, indicating a potentially stable rental market. Given that the FMR covers the market rent and assuming that the rental population is steady, the answer to whether there is enough demand is It Depends. It depends on the specific vacancy rates and the number of active Section 8 vouchers in circulation within the zip code. If these elements indicate a high turnover or limited voucher availability, the investment might be riskier.
Decision Tree Summary:
The critical juncture lies in the third point, where additional local insights into the housing market and Section 8 program specifics are necessary to make a fully informed decision.
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.