Location: Marshall County, MN | Metro: Kittson County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 56757 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $1,240, while the market rent stands at $1,600 according to the Census ACS. This means there is a $360 difference, which translates into a 29% gap between what landlords can charge voucher tenants and what they could potentially receive from open-market renters.
The discrepancy indicates that landlords accepting Section 8 vouchers will be renting their properties below the prevailing market rate. Given that the FMR is lower than the market rent, it's important to understand the implications for landlords. The cost of housing voucher tenants below open-market rates can impact overall yields. For instance, if a landlord has a property that would typically rent for $1,600, accepting a Section 8 tenant would mean a reduction in monthly rental income by $360. Over the course of a year, this amounts to a loss of $4,320 per unit, assuming no vacancies.
In the broader context of ZIP 56757, only 10.8% of residents are renters, suggesting a relatively low demand for rental properties compared to owner-occupied homes. However, the median income in the area is $80,938, which is a key factor in determining the ability of residents to afford higher rents. Despite the lack of data on median home values, the income level suggests that residents might have the financial capacity to pay market rates, thereby making the decision to accept Section 8 vouchers a strategic choice rather than a necessity driven by local economic conditions.
To summarize, the FMR being $360 or 29% less than the market rent presents a clear challenge for landlords seeking to maximize their rental income. However, the decision to participate in the Section 8 program should be weighed against the stability of guaranteed rental payments and the potential for long-term occupancy, which can mitigate risks associated with vacancy and non-payment in the volatile open-market rental sector.
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.