Section 8 Fair Market Rent (FMR) for ZIP 56715 - 2027
Location: Red Lake County, MN | Metro: Grand Forks, ND-MN MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $780 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$77,875
To determine if you should buy in ZIP code 56715 for Section 8 investments, follow this decision tree:
- Does the Fair Market Rent (FMR) of $910 cover debt service on a property?
- If yes: Proceed to the next question.
- If no: Do not invest in this area for Section 8 purposes. The FMR must be sufficient to cover all costs associated with owning and maintaining the property, including mortgage payments, insurance, taxes, and repairs.
- Is the market rent of $473 above, at, or below the FMR?
- If above: This indicates a strong rental market where Section 8 might not be the most profitable option. Consider other investment strategies that take advantage of higher market rents.
- If at or below: Proceed to evaluate the demand for rental properties.
- Are the 13.4% of residents who are renters combined with the days on market (DOM) indicative of sufficient demand?
- If yes: There is a reasonable level of demand for rental properties. However, the low market rent of $473 suggests that the profit margin will be slim unless the FMR significantly exceeds the cost of debt service.
- If no: The demand for rentals is insufficient. Even if the FMR covers debt service, the low market rent and limited demand make this ZIP code an unattractive investment for Section 8 properties.
The final decision hinges on whether the FMR can sufficiently cover the debt service and if there is enough demand for rental units. Given the FMR of $910 and the market rent of $473, the profitability of a Section 8 property in ZIP 56715 is contingent upon the cost of acquiring and maintaining the property. If the FMR does not exceed the total debt service, then investing in this ZIP code for Section 8 would not be advisable. Additionally, the percentage of renters and the DOM need to be analyzed to ensure that there is a steady demand for rental units.
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.