Location: Rice County, MN | Metro: Rice County, MN
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,340 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,330 |
| 4 Bedrooms | $2,940 |
| 5 Bedrooms | $3,410 |
| 6 Bedrooms | $3,819 |
| 7 Bedrooms | $4,125 |
| 8 Bedrooms | $4,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,760 | $318,620 | 0.55% | F |
| 3BR | $2,330 | $385,034 | 0.61% | D |
| 4BR | $2,940 | $470,352 | 0.63% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for the Dundas, MN area, specifically ZIP code 55019, is set at $1,570 for the fiscal year 2026. This figure represents the payment standard for Section 8 vouchers in the region, meaning it's the maximum amount that the Housing Choice Voucher program will pay on behalf of a tenant. It does not represent the rent you can charge, but rather the ceiling for what the program will reimburse.
To put this into perspective, the average rent for properties in Dundas, MN, according to recent Census data, is $1,375. This suggests that the FMR is slightly higher than the typical market rate, which could be beneficial for landlords participating in the Section 8 program as they receive a subsidy closer to the higher end of the market value.
The renter share in ZIP code 55019 is 3.2%, indicating that a significant portion of the population relies on rental housing. For every 100 residents, about 3.2 are renters, suggesting there is a steady demand for rental units, including those that might participate in the Section 8 program.
If you're looking to acquire a property for your first Section 8 rental in Dundas, MN, you should be aware that the median home value in this area is around $388,209. This gives you an idea of the investment required to enter the market. While this is a substantial sum, it aligns with the overall cost of acquiring a property in the area, making it a reasonable starting point for your investment.
Before you decide to proceed with a Section 8 rental, verify that the property meets the minimum property standards set by the Department of Housing and Urban Development (HUD). These standards ensure that the property is safe, decent, and sanitary, and failing to meet these criteria can result in penalties or loss of participation in the program. Once you confirm compliance with these standards, you can confidently move forward with your investment, knowing you're providing affordable housing while also securing a stable income source.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.