Location: Roseau County, MN | Metro: Roseau County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
U.S. Census Bureau data (2024)
The ZIP code 56761 represents a small, predominantly owner-occupied neighborhood with a total population of 458. Only 9.0% of the residents are renters, indicating a community where homeownership is the norm. The median household income in this area is $75,729, which suggests a middle-class community with a stable economic base. However, the median home value is not available, making it difficult to assess the overall property values in the region.
When it comes to rental economics, the Fair Market Rent (FMR) for ZIP 56761 is set at $1,060 for the fiscal year 2026. This figure is crucial for Section 8 investors as it defines the maximum allowable rent for subsidized units. Unfortunately, specific market rent data is also unavailable, leaving a gap in understanding how FMR compares to the actual rents charged in the area. Without this comparison, it's challenging to gauge the potential profitability or demand for rental properties under the Section 8 program.
Given the limited number of renters and the absence of detailed market rent data, ZIP 56761 may not be an ideal location for hands-off voucher operators. The low percentage of renters implies a smaller pool of potential tenants, which could lead to higher vacancy rates and increased competition for those few Section 8 eligible individuals. On the other hand, for hands-on value-add buyers, there might be opportunities to improve and manage properties effectively, given the community's relatively high median income. These investors would need to focus on creating value through property improvements and strategic management practices to attract tenants willing to pay closer to the FMR rate.
In conclusion, while ZIP 56761 offers a stable economic environment with a solid median income, the scarcity of rental units and the lack of precise market rent information make it a challenging investment for passive voucher operators. Instead, it presents a niche opportunity for active investors who can add value and manage properties closely, potentially leveraging the FMR to their advantage.
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.