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HUD Fair Market Rent · FY 2027 · Effective Oct 1, 2026 to Sep 30, 2027

Fair Market Rent in Otter Tail County, Minnesota (FY 2027)

HUD's FY 2027 Fair Market Rent for a two-bedroom in Otter Tail County is $1,071 a month. That's the number the housing authority starts from when it sets Section 8 payment standards here.

Two-bedroom FMR

$1,071

+9.0% from FY 2026

Payment standard

$964–$1,178

90% to 110% of the FMR, two-bedroom

Income to afford

$42,840

a year, with rent at 30% of income

Rank in Minnesota

42nd of 87

by two-bedroom FMR, highest first

FY 2027 Fair Market Rents

Payment standard is the 90% to 110% band a housing authority can set. Income needed puts rent at 30% of gross income, and the hourly wage assumes a 40-hour week.

BedroomsFMRPayment standardIncome neededHourly wagevs FY 2026
Studio$746$671–$821$29,840$14.35/hr+10.0%
1 bedroom$819$737–$901$32,760$15.75/hr+9.3%
2 bedroom$1,071$964–$1,178$42,840$20.60/hr+9.0%
3 bedroom$1,476$1,328–$1,624$59,040$28.38/hr+8.0%
4 bedroom$1,489$1,340–$1,638$59,560$28.63/hr+4.0%
Five to eight bedrooms (PropMetrics estimates)

HUD stops at four bedrooms. These add 15% of the four-bedroom rent per extra bedroom. It's our estimate, not a HUD number.

BedroomsEstimated FMRPayment standard
5 bedroom Estimate$1,712$1,541–$1,883
6 bedroom Estimate$1,936$1,742–$2,130
7 bedroom Estimate$2,159$1,943–$2,375
8 bedroom Estimate$2,382$2,144–$2,620

Source: HUD Office of Policy Development and Research, FY 2027 Fair Market Rents. Rents include utilities. huduser.gov

Market check

HUD's number is one input. What does a two-bedroom in Otter Tail actually rent for?

Search any address in Otter Tail for a rent estimate built from nearby comps, with the HUD figure right next to it.

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What a voucher pays here

The voucher doesn't pay the FMR itself. It pays the payment standard. Housing authorities set it anywhere from 90% to 110% of FMR, which puts a two-bedroom standard in Otter Tail somewhere between $964 and $1,178. The tenant pays roughly 30% of their income, the voucher covers the rest up to the standard, and the PHA won't approve a rent above what comparable unassisted units get.

$1,071 a month is affordable, by HUD's 30% rule, on an income of roughly $42,840 a year. Put another way, $21 an hour full time.

Worked example for a two-bedroom renting at the payment standard. The tenant pays 30% of monthly income and the voucher covers the rest.

Monthly household incomeTenant pays (30%)Voucher pays at 90%$964Voucher pays at 100%$1,071Voucher pays at 110%$1,178
$2,500$750$214$321$428
$4,000$1,200$0$0$0
Run your own numbers in the Section 8 rent calculator

Rate history

The two-bedroom rate went up 9% from FY 2026 ($983) to FY 2027 ($1,071). Since FY 2020 it's up 48% in total, about 5.8% a year. The Minnesota median moved up 5% over the same year.

Fiscal yearStudio1 BR2 BR3 BR4 BR2BR change
FY 2020$509$549$723$921$979—
FY 2021$553$557$734$957$1,015+1.5%
FY 2022$590$594$781$1,029$1,128+6.4%
FY 2023$651$656$863$1,151$1,261+10.5%
FY 2024$640$718$944$1,289$1,395+9.4%
FY 2025$649$721$946$1,307$1,381+0.2%
FY 2026$678$749$983$1,367$1,432+3.9%
FY 2027In effect$746$819$1,071$1,476$1,489+9.0%

Get FY 2028 Otter Tail County rates the day HUD publishes them

HUD updates Fair Market Rents every fall. One email a year, no newsletter.

About this rate

Fair Market Rent is HUD's estimate of what a modest, decent unit rents for in an area, utilities included. It's set once a year and runs October to September. For FY 2027 that's October 1, 2026 through September 30, 2027. In Otter Tail, that runs from $746 for a studio up to $1,489 for four bedrooms, all five rates in the table above.

Because Otter Tail sits outside any HUD metro area, its rate is a county-wide figure built from local rents. One number covers every address in the county, Fergus Falls included.

Among Minnesota's 87 counties, Otter Tail ranks 42nd for two-bedroom FMR. That's about 2% above the state median of $1,048 and within a couple percent of the national median county at $1,063. About 60,475 people live here, 17th in the state.

Rates by ZIP code

Zoom in and the picture changes. HUD's Small Area FMRs put a two-bedroom at $1,010 in 56324 (Dalton) and $1,510 in 56528 (Dent), with the 20 ZIP codes in between. Housing authorities in HUD-designated metros use those ZIP rates instead of the county rate. Everywhere else the ZIP numbers show where rents actually sit, and the county rate stays the official standard.

ZIPCity2BR ratevs county
56324Dalton$1,010-5.7%
56361Parkers Prairie$1,010-5.7%
56515Battle Lake$1,200+12.0%
56518Bluffton$1,050-2.0%
56524Clitherall$1,230+14.8%
56527Deer Creek$1,030-3.8%
56528Dent$1,510+41.0%
56533Elizabeth$1,160+8.3%
56534Erhard$1,080+0.8%
56537Fergus Falls$1,090+1.8%
56538Fergus Falls$1,070-0.1%
56551Henning$1,010-5.7%
56567New York Mills$1,010-5.7%
56571Ottertail$1,140+6.4%
56572Pelican Rapids$1,100+2.7%
56573Perham$1,040-2.9%
56576Richville$1,040-2.9%
56586Underwood$1,150+7.4%
56587Vergas$1,030-3.8%
56588Vining$1,070-0.1%

Nearby counties

Two-bedroom FMR, with how each compares to Otter Tail.

Questions people ask

$1,071 a month for FY 2027, which runs October 1, 2026 through September 30, 2027. The other rates are $746 for a studio, $819 for one bedroom, $1,476 for three and $1,489 for four.

What does a rental in Otter Tail actually go for?

HUD's number is one input. Search any address in Otter Tail for a rent estimate built from nearby comps. Free to start, no card.

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