The 2 bedroom fair market rent in Fergus Falls (Otter Tail County) is $980 for FY2026. Rents here moved +3.2 percent year over year. ZIP 56538 sits in the Otter Tail County, MN area.
See how this ZIP compares for Section 8 vouchers, fair market rent against market asking rent for every tracked Minnesota ZIP.
| Unit size | FY2026 FMR | Vs FY2025 | ACS median |
|---|---|---|---|
| Studio | $680 | +4.6% | |
| 1 bedroom | $750 | +4.2% | |
| 2 bedroom | $980 | +3.2% | |
| 3 bedroom | $1,360 | +3.8% | |
| 4 bedroom | $1,430 | +2.9% |
FMR is the HUD Fair Market Rent for this ZIP, the 40th percentile of gross rents. It anchors Section 8 payment standards and runs below top of market. ACS median is the Census survey estimate where available.
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Among the 20 Otter Tail County ZIP codes with a HUD rent estimate, 56538 ranks number 13 of 20 on 2 bedroom fair market rent. That is $20 below the county median of $1,000. The county runs from $970 in Vergas 56587 to $1,410 in Dent 56528. Statewide the median 2 bedroom fair market rent is $1,090, which puts Fergus Falls 10 percent below the Minnesota median. Zillow does not publish a rent index for 56538, so the fair market rent is the only published rent benchmark here. The landlord voucher check compares an asking rent against it. Voucher competitiveness for every Otter Tail County ZIP code with both signals is on the Otter Tail County Section 8 page.
Of the 6 nearest ZIP codes with an estimate, Elizabeth 56533 carries the highest 2 bedroom fair market rent at $1,280 and Dalton 56324 the lowest at $970, against $980 here.
The HUD fair market rent for a 2 bedroom in ZIP 56538 is $980 for FY2026. Actual rents vary by unit size, condition, and location within the ZIP.
The 2 bedroom fair market rent rose 3.2 percent from FY2025 to FY2026, moving from $950 to $980.
Fair Market Rent is HUD's estimate of the 40th percentile gross rent for a ZIP. It sets Section 8 payment standards, so it is the rent a voucher will support here. Investors use it as a conservative floor when underwriting rental income.
Rent level is only one input. Run the numbers: at $980 for a 2 bedroom, a deal in Fergus Falls pencils or it does not based on price, taxes, insurance, and financing. Pencilwrite computes cap rate, cash-on-cash, DSCR, and true ROE from a few inputs.
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