FY2027 Small Area FMR · Fergus Falls, MN

ZIP 56538 Fair Market Rent & Payment Standards

HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 56538 (Fergus Falls, MN) is $1,070 a month, up 9.2% from FY2026. That is 0% equal to the Otter Tail County, MN area-wide FMR of $1,071.

2-bedroom SAFMR$1,070per month ▲ 9.2%

Area-wide 2 BR FMR$1,071Otter Tail County, MN

Rank in the area17thof 38 ZIP codes

Payment standard range, 2 bedrooms

90% of SAFMR$963

2 BR Small Area FMR$1,070

110% of SAFMR$1,177

Housing agencies may set voucher payment standards anywhere from 90% to 110% of the FMR without asking HUD.

Studio$750▲ 10.3%

1 BR$820▲ 9.3%

2 BR$1,070▲ 9.2%

3 BR$1,470▲ 8.1%

4 BR$1,490▲ 4.2%

FY2027 FY2026

Where 56538 sits in the Otter Tail County, MN area

Of the 38 ZIP codes HUD lists for the area, 56538 has the 17th highest two-bedroom Small Area FMR. Otter Tail County, MN is not on HUD's list of mandatory Small Area FMR areas, so voucher payment standards here are normally based on the area-wide FMR of $1,071 for two bedrooms; an agency that opts in to Small Area FMRs would use $1,070 for this ZIP code instead.

All unit sizes

Monthly gross rent including utilities
Unit	FY2027 SAFMR	Payment standard range	Area-wide FMR	FY2026 SAFMR
Studio	$750	$675 – $825	$746	$680
1 bedroom	$820	$738 – $902	$819	$750
2 bedrooms	$1,070	$963 – $1,177	$1,071	$980
3 bedrooms	$1,470	$1,323 – $1,617	$1,476	$1,360
4 bedrooms	$1,490	$1,341 – $1,639	$1,489	$1,430

A household renting a two-bedroom home at the Small Area FMR of $1,070 needs about $42,800 a year to keep housing costs at 30% of income. The area median family income is $99,700 and the 80% low-income limit for four people is $79,750. ZIP code 56538 lies mainly in Otter Tail County. See the Otter Tail County, MN county page for the full income limits table and the household check.

Nearby ZIP codes

ZIP	Place	Distance	2 BR SAFMR
56537	Fergus Falls	0.8 mi	$1,090
56533	Elizabeth	9.5 mi	$1,160
56324	Dalton	11.4 mi	$1,010
56586	Underwood	12.0 mi	$1,150
56543	Foxhome	12.4 mi	$1,130
56534	Erhard	13.4 mi	$1,080

Questions

What is the Fair Market Rent for ZIP code 56538?

HUD's FY2027 Small Area Fair Market Rents for 56538 are $750 (studio), $820 (1 BR), $1,070 (2 BR), $1,470 (3 BR) and $1,490 (4 BR) a month.

What is the Section 8 payment standard in 56538?

Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 56538 that range is $963 to $1,177 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.

Which income limits apply in 56538?

The FY2026 income limits of the Otter Tail County, MN area apply: median family income $99,700, low-income (80%) limit $79,750 for a family of four.