Section 8 Fair Market Rent (FMR) for ZIP 55041 - 2027

Location: Goodhue County, MN | Metro: Wabasha County, MN HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$990
1 Bedroom	$1,060
2 Bedrooms	$1,180
3 Bedrooms	$1,560
4 Bedrooms	$1,880
5 Bedrooms	$2,181
6 Bedrooms	$2,443
7 Bedrooms	$2,638
8 Bedrooms	$2,770

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

7,510

Median Household Income

$78,672

Housing Units

3,810

Renter Percentage

17.2%

Occupancy Rate

86.3%

Renter Occupied

566

Housing Authorities Serving ZIP 55041

SOUTHEAST MN MULTI-COUNTY HRA (Wabasha, MN) - 552 Section 8 vouchers
HRA OF RED WING, MINNESOTA (Red Wing, MN) - 169 Section 8 vouchers

Lake City, Minnesota, located in ZIP code 55041, is a suburban area known for its quiet streets and family-friendly atmosphere. Nestled within the broader context of Minneapolis-St. Paul, it offers residents a taste of small-town living while remaining close to urban amenities. For real estate investors, particularly those interested in Section 8 properties, understanding the local rental market dynamics is crucial.

The Fair Market Rent (FMR) for ZIP 55041 is set at $1130 for fiscal year 2024, providing a benchmark for rental pricing that aligns with government-subsidized housing programs.
Market rent, as reported by the Census American Community Survey (ACS), stands at $881, indicating a lower average rental price compared to the FMR, which could suggest opportunities for profit in subsidized housing.
The median home value in Lake City is $317,580, reflecting a stable and potentially growing real estate market.
Renters make up 17.2% of the population, suggesting a moderate demand for rental properties but also a significant owner-occupied market.
While the exact number of days on the market (DOM) is not available, the data points to a steady rental market where properties are likely to be occupied relatively quickly.
The median household income in the area is $78,672, which supports the affordability of the median home value and indicates a healthy economic base for potential tenants.

In summary, Lake City presents a balanced opportunity for real estate investment. The disparity between the FMR and market rent suggests potential profitability for Section 8 landlords, especially when considering the moderate renter share and stable median home values. The robust median income further underpins the financial stability of the tenant pool, making it a favorable location for small-portfolio investors seeking reliable returns.

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.