FY2027 Small Area FMR · Underwood, MN

ZIP 56586 Fair Market Rent & Payment Standards

HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 56586 (Underwood, MN) is $1,150 a month, unchanged from FY2026. That is 7% above the Otter Tail County, MN area-wide FMR of $1,071.

2-bedroom SAFMR$1,150per month ■ 0.0%

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

Rank in the area7thof 38 ZIP codes

Payment standard range, 2 bedrooms

90% of SAFMR$1,035

2 BR Small Area FMR$1,150

110% of SAFMR$1,265

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

Studio$800▲ 1.3%

1 BR$880■ 0.0%

2 BR$1,150■ 0.0%

3 BR$1,580▼ 1.2%

4 BR$1,600▼ 4.8%

FY2027 FY2026

Where 56586 sits in the Otter Tail County, MN area

Of the 38 ZIP codes HUD lists for the area, 56586 has the 7th 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 $1,150 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	$800	$720 – $880	$746	$790
1 bedroom	$880	$792 – $968	$819	$880
2 bedrooms	$1,150	$1,035 – $1,265	$1,071	$1,150
3 bedrooms	$1,580	$1,422 – $1,738	$1,476	$1,600
4 bedrooms	$1,600	$1,440 – $1,760	$1,489	$1,680

A household renting a two-bedroom home at the Small Area FMR of $1,150 needs about $46,000 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 56586 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
56515	Battle Lake	6.1 mi	$1,200
56324	Dalton	10.9 mi	$1,010
56576	Richville	11.8 mi	$1,040
56524	Clitherall	12.4 mi	$1,230
56537	Fergus Falls	12.7 mi	$1,090
56534	Erhard	13.6 mi	$1,080

Questions

What is the Fair Market Rent for ZIP code 56586?

HUD's FY2027 Small Area Fair Market Rents for 56586 are $800 (studio), $880 (1 BR), $1,150 (2 BR), $1,580 (3 BR) and $1,600 (4 BR) a month.

What is the Section 8 payment standard in 56586?

Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 56586 that range is $1,035 to $1,265 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.

Which income limits apply in 56586?

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.