Section 8 Fair Market Rent (FMR) for ZIP 56678 - 2027

Location: Hubbard County, MN | Metro: Beltrami County, MN

Investment Score for ZIP 56678

N/A

Monthly Rent (2BR)

$1,250

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$890
1 Bedroom	$970
2 Bedrooms	$1,250
3 Bedrooms	$1,530
4 Bedrooms	$2,010
5 Bedrooms	$2,332
6 Bedrooms	$2,612
7 Bedrooms	$2,821
8 Bedrooms	$2,962

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,530	$287,859	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,730

Median Household Income

$73,194

Housing Units

749

Renter Percentage

6.8%

Occupancy Rate

78.8%

Renter Occupied

The ZIP code 56678, located in a suburban setting within the state of Minnesota, is characterized by its stable housing market and relatively low vacancy rates. This area offers a mix of rental properties and owner-occupied homes, making it an interesting investment opportunity for both landlords and small-portfolio investors.

The Fair Market Rent (FMR) for a two-bedroom apartment in the metropolitan area for fiscal year 2026 is set at $1,150. This figure serves as a benchmark for the rental market, indicating the average monthly rent that tenants can expect to pay for a standard unit.
According to the Census American Community Survey (ACS), the current market rent for a typical two-bedroom apartment in ZIP 56678 stands at $725. This represents a significant gap between the actual rents charged and the FMR, suggesting potential for rental price increases.
The median home value in this ZIP code is $251,259, which is indicative of the overall property values and can help investors gauge the potential appreciation in their investments over time.
Renters make up 6.8% of the population, showing a lower-than-average rental demand compared to other areas. However, this also indicates a strong owner-occupancy rate, which can stabilize the local real estate market.
The median household income in ZIP 56678 is $73,194. This suggests that residents have a moderate level of disposable income, potentially allowing them to afford higher rents if market conditions warrant such increases.

The analysis points to a balanced real estate market in ZIP 56678, where rental properties can be priced competitively while still offering attractive returns. The discrepancy between the market rent and the FMR presents an opportunity for landlords to increase their rental incomes gradually without straining the affordability of tenants. Moreover, the solid median home value and median income levels provide a foundation for steady growth and stability in the local real estate sector. For small-portfolio investors, focusing on quality rental units that meet or slightly exceed the current market rent could yield favorable outcomes, especially considering the area's lower renter share and higher owner-occupancy rate. Overall, the ZIP code offers a promising environment for those looking to invest in a stable and growing real estate market.

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.