Location: Red Lake County, MN | Metro: Grand Forks, ND-MN MSA
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 | $820 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $129,031 | 0.78% | D |
| 3BR | $1,410 | $185,337 | 0.76% | D |
| 4BR | $1,700 | $227,436 | 0.75% | D |
| 5BR | $1,972 | $269,241 | 0.73% | D |
U.S. Census Bureau data (2024)
The Section 8 program's financial dynamics in ZIP code 56716, which encompasses Crookston, Minnesota, present a compelling opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, set at $910 for fiscal year 2024, exceeds the average market rent reported by the Census Bureau's American Community Survey (ACS), which stands at $847. This creates a gap of $63, or approximately 7.4%, favoring those who accept Section 8 vouchers.
In Crookston, where 38.1% of residents are renters, the discrepancy between FMR and market rent translates into a tangible advantage. The higher FMR means that landlords can charge closer to the government-set rate of $910, rather than the lower market rate of $847, when they have a tenant with a Section 8 voucher. This effectively increases the rental yield for landlords, making it a lucrative option in an otherwise competitive rental market.
The median home value in Crookston is $182,777, and the median household income is $59,744. These figures provide a backdrop against which the rental market operates. Accepting Section 8 vouchers allows landlords to tap into a stable source of rental income, subsidized by the federal government, which can be particularly beneficial in a region where economic conditions might otherwise limit rental demand.
However, it is important to note that while the FMR provides a higher rental rate, the administration of Section 8 vouchers also comes with its own set of requirements and regulations. Landlords must ensure their properties meet Housing Quality Standards (HQS) and comply with other HUD guidelines. Despite these considerations, the financial incentive of renting at the FMR rate rather than the market rate makes it a strategic choice for maximizing returns in the Crookston rental 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.