Location: Roseau County, MN | Metro: Roseau County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 56726 in Roseau County, MN, reveals a favorable environment for those seeking stable rental income. The HUD Fair Market Rent (FMR) for the area is set at $970 for the fiscal year 2026, which is higher than the market rent reported by the Census ACS at $834. This means that voucher tenants will generally cashflow at the FMR level, providing a positive financial outlook for landlords.
To further understand the investment potential, consider the median home value in the area, which stands at $187,410. Using this figure, we can calculate the rent-to-price ratio. A simple calculation shows that the annual rent at the FMR level ($970 per month) would be $11,640, translating to a rent-to-price ratio of approximately 6.2%. This ratio suggests that the rental market is relatively strong compared to the purchase price of homes, making it attractive for both rental and potential buy-and-hold strategies.
The dynamics between renting and buying in this market do not significantly impact the decision-making process for investors, as there is limited data available on the median days on market (DOM) and the percentage of price cuts. However, the lack of these metrics does not detract from the overall positive cashflow scenario presented by the higher FMR compared to market rent.
The strongest angle for investors in ZIP code 56726 is the potential for steady cashflow due to the discrepancy between the HUD FMR and the actual market rent. This provides a reliable source of income, especially for those who can maintain their properties at or above the FMR level without significant additional costs.
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.