Location: Pepin County, WI | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,120 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 54769 are defined by the SAFMR (Small Area Fair Market Rent) set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is $1270. However, it's important to understand that this does not equate directly to the amount a landlord will receive from the voucher program.
The local market rent for a two-bedroom unit in ZIP 54769, according to the Census ACS, is $763. This figure is lower than the SAFMR, indicating that the market rate is below the maximum allowed by the voucher program.
A landlord participating in the Section 8 program should be aware that the reimbursement is calculated based on the lower of the market rent or the SAFMR, plus any applicable utility allowances. In this case, since the market rent is lower, the reimbursement will be based on the actual market rent of $763.
The voucher pays a portion of the rent after accounting for the tenant's contribution, which is typically 30% of their income. If we assume the tenant's share is around $229 (based on an average income of about $830 per month), then the government would cover the remaining balance of the rent.
To calculate the exact reimbursement, subtract the tenant's share from the market rent: $763 - $229 = $534. Therefore, the government would pay the landlord $534 towards the rent for a two-bedroom apartment. This calculation assumes no additional utility allowances, which can vary and may increase the total reimbursement slightly.
In ZIP 54769, landlords accepting Section 8 vouchers will find that the reimbursement covers less than the SAFMR but aligns closely with the local market rent. Given these numbers, there is a significant gap between the market rent and the reimbursement rate. Landlords should prepare for a reimbursement that falls short of the SAFMR by $736 ($1270 - $534), reflecting the difference between the voucher payment and the SAFMR for a two-bedroom unit.
This economic reality means that landlords in ZIP 54769 must carefully consider their participation in the Section 8 program, balancing the stability of government-backed rental payments against the potential shortfall compared to the SAFMR. While the program ensures timely payments, the reimbursement rate will not match the higher SAFMR, leaving landlords with a noticeable surplus if they were aiming for the SAFMR but a shortfall when compared to the maximum allowable rent under the voucher program.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.