Location: Lake of the Woods County, MN | Metro: Lake of the Woods County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,370 |
| 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)
The ZIP code 56686, located in a county with 905 residents, stands out due to its unique economic profile. Only 10.1% of the population rents their homes, indicating a predominantly owner-occupied area. The median household income here is $80,417, which is above the national average. Additionally, the median home value in ZIP 56686 is $222,390, suggesting that property values are relatively high and stable.
Moving into the specifics of Section 8 voucher economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,190. However, the market rent data for ZIP 56686 is not available, making it difficult to compare the FMR directly with local rental prices. This lack of market data could be due to the low percentage of renters in the area, leading to limited availability of rental listings.
Given the data signature, ZIP 56686 appears to be a stable market. With a high median income and home values, the area likely attracts individuals who can afford homeownership, reducing reliance on rental properties. Landlords and small-portfolio investors should consider the potential challenges in finding tenants willing to use Section 8 vouchers, given the strong preference for homeownership among residents. Despite these considerations, the stable economic conditions of the area provide a solid foundation for investment.
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.