Location: Red Lake County, MN | Metro: Pennington County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
U.S. Census Bureau data (2024)
The market dynamics in ZIP code 56754 reveal a scenario where demand appears to be slightly outpacing supply, based on the available data points. The Fair Market Rent (FMR) for the area stands at $1,310, set for the fiscal year 2026, indicating a benchmark that reflects the rental market's expected stability or growth. In contrast, the actual market rent, as reported by the Census Bureau's American Community Survey (ACS), is currently at $1,031. This discrepancy suggests that while landlords might aim for higher rents, the actual rents charged are lower, possibly due to the immediate need to fill vacancies.
The 15.7% renter share in the population indicates a significant portion of residents who prefer or are compelled to rent rather than own their homes. This high percentage can exert long-term housing pressure on the market, as it implies a continuous demand for rental properties. Landlords and small-portfolio investors should anticipate a steady flow of potential tenants, which can be beneficial for maintaining occupancy rates and ensuring a stable income stream.
Despite the lack of specific data on price-cut share, days on market (DOM), and median home value, the overall trend suggests a balanced but slightly tight rental market. The gap between the FMR and the actual market rent could widen if demand increases further, pushing actual rents closer to the FMR. Conversely, if the supply of rental units grows, this could stabilize or even reduce the actual market rent, making it more competitive with the FMR.
In summary, ZIP 56754 presents a market where the high renter share drives demand, creating a situation favorable for those looking to invest in rental properties. However, the potential for fluctuation in actual market rents means that landlords must remain vigilant and adaptable to changes in the local economy and housing needs.
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.