Location: Marshall County, MN | Metro: Grand Forks, ND-MN MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,370 | $193,402 | 0.71% | D |
U.S. Census Bureau data (2024)
The ZIP code 56762, located in Warren, MN (Marshall County), can serve as a cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) and the actual market rent.
In FY 2024, the FMR for a two-bedroom apartment in ZIP 56762 is set at $910, while the market rent stands at $733. This means that landlords participating in the Section 8 program can expect to receive a higher rent subsidy than the typical market rate, creating a stable and predictable cash flow. Given the median home value of $194,333, this area offers affordable property acquisition costs, making it easier for landlords to maintain profitability even when receiving government-subsidized rents.
The lack of significant appreciation potential and the absence of a notable price-cut share or days on market (DOM) indicate that this ZIP code is not likely to be an appreciation play. Instead, the focus should be on the steady income provided by the Section 8 program.
Additionally, ZIP 56762 does not serve as a strong diversifier due to the limited data on renter share and median income. However, the 27.7% renter share suggests that there is a substantial tenant population, which can benefit from a Section 8 program, ensuring consistent occupancy and cash flow.
To summarize, ZIP 56762 is best suited as a cash-flow anchor within a Section 8 portfolio strategy, thanks to the favorable spread between FMR and market rent, coupled with relatively low median home values.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.