Location: Rice County, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
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 | $1,570 |
| 1 Bedroom | $1,770 |
| 2 Bedrooms | $2,150 |
| 3 Bedrooms | $2,800 |
| 4 Bedrooms | $3,150 |
| 5 Bedrooms | $3,654 |
| 6 Bedrooms | $4,092 |
| 7 Bedrooms | $4,419 |
| 8 Bedrooms | $4,640 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,150 | $464,882 | 0.46% | F |
| 3BR | $2,800 | $488,911 | 0.57% | F |
| 4BR | $3,150 | $533,947 | 0.59% | F |
| 5BR | $3,654 | $557,256 | 0.66% | D |
U.S. Census Bureau data (2024)
Elko New Market, MN, located in ZIP code 55020, is characterized by a relatively small population of 4,115 residents. The area is predominantly owner-occupied, with only 1.0% of the population being renters. This indicates a community where homeownership is highly prevalent, reflecting a stable and possibly affluent residential environment. The median household income in the area is notably high at $131,071, suggesting that residents have significant financial means. Additionally, the median home value stands at $518,914, which aligns with the high-income profile of the community, indicating that it is a desirable location for those seeking quality housing.
The Federal Market Rent (FMR) for ZIP code 55020 in fiscal year 2024 is set at $1,860. However, market rent data is currently unavailable, which could imply that the local rental market is limited due to the low percentage of renters. Given the high median income and home values, the FMR likely represents a substantial portion of the actual rents charged in the few rental units available. For context, the FMR serves as a benchmark for determining the maximum amount of rent that can be charged to tenants participating in the Section 8 Housing Choice Voucher program.
Considering the characteristics of ZIP 55020, it appears to be a better fit for a hands-off voucher operator rather than a hands-on value-add buyer. The limited number of rental properties suggests that there is little opportunity for active management or property improvements aimed at increasing rental income. Instead, landlords and investors should focus on maintaining their properties to meet the standards required by the Section 8 program, ensuring compliance with regulations, and managing tenant relations efficiently. The high median income and home values also indicate that the area is less prone to vacancy issues, providing a stable environment for hands-off investment strategies.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.