Location: Roseau County, MN | Metro: Roseau County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 56756 is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,010, while the Census ACS reports the current market rent at $986. This creates a positive gap of $24, which represents an increase of approximately 2.4% over the market rent.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to maximize yields. Voucher tenants provide a guaranteed income stream based on the higher FMR rate, thereby offering a financial advantage over open-market tenants who might pay less. This makes it a strategic investment opportunity where the government subsidizes the difference between the market rate and the FMR, ensuring a steady and slightly above-market rental income.
The ZIP code's context further supports this analysis. With only 10.8% of residents being renters, there is limited competition for rental properties, making it easier to attract voucher tenants. Additionally, the median home value of $229,997 and median income of $94,583 suggest that homeownership is relatively affordable, but many may still struggle to cover living expenses, including rent. Therefore, the presence of voucher tenants helps fill this gap, providing affordable housing options for those who need them most.
Investors should be aware of the administrative requirements and potential delays in receiving payments when dealing with housing vouchers. However, the overall financial benefit of renting to voucher tenants, given the favorable FMR-to-market rent ratio, outweighs these considerations. The $24 differential per unit can contribute significantly to the bottom line, especially when scaled across multiple units in a portfolio.
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.