Location: Roseau County, MN | Metro: Roseau County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56763, located in Roseau County, MN metro, reveals several key points regarding its viability for real estate investment, particularly for Section 8 landlords and small-portfolio investors.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the area, set at $970 for fiscal year 2026, is notably higher than the current market rent of $800, based on Census ACS data. This suggests that landlords could potentially see a positive cash flow if they can secure Section 8 tenants paying closer to the FMR, as it exceeds the typical market rate.
Moving on to acquisition affordability, the median home value in ZIP 56763 stands at $218,626. Given that the average market rent is lower than the FMR, acquiring homes at this median value would likely be affordable for investors looking to enter the market. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts indicates a stable housing market without significant overpricing or rapid turnover issues. This stability can be beneficial for long-term investment strategies.
Regarding tenant demand, the population of ZIP 56763 is 5,180, with 28.2% of residents being renters. This means approximately 1,460 individuals are actively seeking rental housing, providing a steady stream of potential tenants for landlords. The demand is substantial relative to the population size, suggesting a good opportunity to fill vacancies with Section 8 tenants.
In conclusion, ZIP 56763 presents a favorable environment for Section 8 real estate investments. The rent math is promising due to the gap between the FMR and current market rents, indicating potential for positive cash flow. Acquisition costs are reasonable given the median home value, and there is a clear tenant demand supported by the significant renter share of the population. These factors collectively suggest a viable and attractive investment opportunity for landlords and small-portfolio investors.
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.