Location: Red Lake County, MN | Metro: Pennington County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 56748 in the upcoming fiscal year 2026 is set at $1,120. This figure represents the payment standard for Section 8 housing vouchers in the area, which is the amount that the government will pay towards your tenant's rent. However, it is important to note that this does not necessarily mean you should set your rent at this level; rather, it is the maximum subsidy amount.
In comparison, the average rent for the area, according to the Census American Community Survey, is $686. This indicates that the FMR is significantly higher than the typical rent in the region, potentially making Section 8 properties more attractive to renters.
The renter share in ZIP 56748 is 20.5%, meaning that over one-fifth of the households in the area are renters. This suggests a reasonable demand for rental properties, particularly those that can accommodate Section 8 tenants. Given the higher FMR compared to the local average, there is likely a strong interest among potential tenants for affordable housing options.
When considering the acquisition cost of a property, the median home value in the area is around $244,464. This is an important figure when evaluating whether a Section 8 rental can be financially viable. With the FMR being higher than the typical market rent, landlords can often receive a steady income that is closer to the FMR, thus improving the financial outlook for a Section 8 rental property.
Before deciding to enter the Section 8 market, verify that your property meets all the necessary requirements for the program, including but not limited to safety, health, and structural standards. This ensures compliance and avoids any issues that could arise from renting to a Section 8 tenant.
The discrepancy between the FMR and the local average rent presents an opportunity for landlords to provide affordable housing while also securing a reliable source of income. The combination of the 20.5% renter share and the FMR of $1,120 makes ZIP 56748 a potentially lucrative market for Section 8 rentals.
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.