Location: Red Lake County, MN | Metro: Grand Forks, ND-MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
U.S. Census Bureau data (2024)
ZIP 56742, located in Red Lake County, MN, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for ZIP 56742 in fiscal year 2024 is set at $910, which is significantly higher than the market rent of $675. This creates a spread of $235, allowing landlords to receive a subsidy that covers the difference between the market rate and the FMR.
The median home value in ZIP 56742 is $188,378, indicating that it is a relatively affordable area. This makes it attractive for landlords who want to ensure steady rental income without the risk of high vacancy rates. The strong demand for subsidized housing in this area means that landlords can rely on consistent cash flow from Section 8 tenants.
ZIP 56742 does not present significant opportunities for appreciation plays, as there is no data suggesting a rapid increase in property values or a low price-cut share. However, the median income in the area is $92,500, which suggests a stable economic environment that supports long-term investment.
While the renter share stands at 15.3%, this figure does not necessarily indicate a need for diversification within the portfolio. Instead, it highlights the potential for a balanced mix of homeowners and renters, which can be beneficial for maintaining a steady income stream.
In conclusion, ZIP 56742 is best suited as a cash-flow anchor due to the favorable subsidy spread and stable economic conditions, making it a reliable choice for landlords and small-portfolio investors seeking consistent returns.
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.