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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $360,186 | 0.28% | F |
| 3BR | $1,410 | $449,576 | 0.31% | F |
| 4BR | $1,690 | $545,691 | 0.31% | F |
U.S. Census Bureau data (2024)
The ZIP code 56736, located in Mentor, MN, presents a dynamic rental market influenced by various factors. The Fair Market Rent (FMR) for the area stands at $910 for fiscal year 2024, indicating a level set by HUD for determining payment standards for Section 8 vouchers. This figure is notably higher than the market rent reported at $738 based on the latest Census American Community Survey (ACS) data. The discrepancy between FMR and market rent suggests that while the government's benchmark is high, actual rents might be more affordable, possibly due to competition among landlords.
The median home value of $325,507 provides insight into the overall property values in the area. While this number alone doesn't indicate whether supply outpaces demand or vice versa, it can be seen as a reflection of the local economy and the attractiveness of the area for homeownership. Given the lack of specific data on price-cut share and days on market (DOM), we cannot definitively state the direction of the market's supply-demand balance. However, the lower market rent compared to FMR could imply a slight oversupply, as landlords might offer competitive rates to attract tenants.
A key metric to consider is the 9.2% renter share in the area. This relatively low percentage indicates that the majority of residents own their homes, which could suggest limited long-term housing pressure from renters. However, even with a smaller renter population, the dynamics of the rental market remain significant. Landlords in ZIP 56736 should be aware of the potential for increased competition as the market adjusts to meet the needs of both renters and homeowners. The stability of property values and the modest rental prices may encourage some renters to transition to homeownership over time, further influencing the local housing landscape.
To fully understand the market in motion, landlords and small-portfolio investors must stay informed about changes in local economic conditions, employment trends, and any shifts in the renter share. These factors will continue to shape the rental and homeownership markets in Mentor, MN, making it essential to monitor them closely.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.