Location: Beltrami County, MN | Metro: Beltrami County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The ZIP code 56685 presents an interesting case for both renters and landlords. Given the lack of specific median income and market rate data, we must rely on the voucher payment standard to frame our analysis. The Fair Market Rent (FMR) for this area, set at $990 for fiscal year 2026, serves as a benchmark for affordability.
With only 2.1% of the population being renters, the competition among landlords in this ZIP code is relatively low. This means that landlords have a smaller pool of potential tenants to draw from, but it also implies that the demand for rental properties might be stable and less volatile compared to areas with higher percentages of renters.
The affordability gap becomes apparent when considering the voucher payment standard. A household receiving a voucher would be able to afford a property renting at the FMR of $990. However, without specific market rate data, it's challenging to determine if this is above or below the actual market rates in ZIP 56685. If the market rate is higher than $990, there could be a significant number of households unable to afford market-rate rentals, making voucher-receiving tenants a more viable option for landlords.
For landlords, the decision between accepting voucher tenants versus those who pay cash rent should be informed by the local market dynamics. If the market rate is indeed higher than $990, accepting vouchers could be a strategic move to fill vacancies in a low-demand environment. Vouchers provide a guaranteed and consistent source of income, reducing the risk of unpaid rent and vacancy periods.
However, landlords should also consider the administrative overhead associated with voucher programs. While the FMR of $990 offers stability, landlords must weigh this against the effort required to participate in these programs. In a market where the population is predominantly non-renters, ensuring a steady stream of cash-paying tenants might be difficult, especially if they require rents above the FMR.
Takeaway: For landlords in ZIP 56685, the FMR of $990 represents a baseline for affordable housing. Given the low percentage of renters and the potential difficulty in finding cash-paying tenants willing to meet higher market rates, participating in voucher programs could be a prudent strategy to maintain occupancy and ensure a reliable income stream. However, the decision should be based on a thorough understanding of the local rental market and the trade-offs between administrative ease and potential higher rents from cash-paying tenants.
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.