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.
| Bedrooms | FMR | Payment standard | Income needed | Hourly wage | vs 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.
| Bedrooms | Estimated FMR | Payment 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 income | Tenant pays (30%) | Voucher pays at 90%$964 | Voucher pays at 100%$1,071 | Voucher pays at 110%$1,178 |
|---|---|---|---|---|
| $2,500 | $750 | $214 | $321 | $428 |
| $4,000 | $1,200 | $0 | $0 | $0 |
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 year | Studio | 1 BR | 2 BR | 3 BR | 4 BR | 2BR 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% |
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.
| ZIP | City | 2BR rate | vs county |
|---|---|---|---|
| 56324 | Dalton | $1,010 | -5.7% |
| 56361 | Parkers Prairie | $1,010 | -5.7% |
| 56515 | Battle Lake | $1,200 | +12.0% |
| 56518 | Bluffton | $1,050 | -2.0% |
| 56524 | Clitherall | $1,230 | +14.8% |
| 56527 | Deer Creek | $1,030 | -3.8% |
| 56528 | Dent | $1,510 | +41.0% |
| 56533 | Elizabeth | $1,160 | +8.3% |
| 56534 | Erhard | $1,080 | +0.8% |
| 56537 | Fergus Falls | $1,090 | +1.8% |
| 56538 | Fergus Falls | $1,070 | -0.1% |
| 56551 | Henning | $1,010 | -5.7% |
| 56567 | New York Mills | $1,010 | -5.7% |
| 56571 | Ottertail | $1,140 | +6.4% |
| 56572 | Pelican Rapids | $1,100 | +2.7% |
| 56573 | Perham | $1,040 | -2.9% |
| 56576 | Richville | $1,040 | -2.9% |
| 56586 | Underwood | $1,150 | +7.4% |
| 56587 | Vergas | $1,030 | -3.8% |
| 56588 | Vining | $1,070 | -0.1% |
Nearby counties
Two-bedroom FMR, with how each compares to Otter Tail.
Douglas County
34 mi · 39,575 people
$1,027
-4%
Grant County
34 mi · 6,127 people
$1,014
-5%
Wadena County
34 mi · 14,256 people
$1,059
-1%
Becker County
36 mi · 35,343 people
$1,105
+3%
Wilkin County
36 mi · 6,371 people
$1,014
-5%
Todd County
44 mi · 25,575 people
$1,025
-4%
Pope County
51 mi · 11,418 people
$1,088
+2%
Clay County
54 mi · 66,059 people
$1,104
+3%
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.
Tools for this county
Fair Market Rent lookup
Any ZIP code's Small Area FMR by bedroom count
Section 8 rent calculator
Payment standard and tenant share for a specific rent
What is Fair Market Rent?
How HUD calculates FMR and what it means for landlords
Rent affordability calculator
The income a household needs for a given rent
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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