Section 8 Fair Market Rent (FMR) for ZIP 55060 - 2027

Location: Steele County, MN | Metro: Steele County, MN

Investment Score for ZIP 55060

Monthly Rent (2BR)

$1,250

Median Price (2BR)

$229,693

1% Rule

0.54%

Annual Yield

6.53%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$870
1 Bedroom	$960
2 Bedrooms	$1,250
3 Bedrooms	$1,710
4 Bedrooms	$1,820
5 Bedrooms	$2,111
6 Bedrooms	$2,364
7 Bedrooms	$2,553
8 Bedrooms	$2,681

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,250	$229,693	0.54%	F
3BR	$1,710	$278,295	0.61%	D
4BR	$1,820	$343,398	0.53%	F
5BR	$2,111	$433,187	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

29,599

Median Household Income

$84,906

Housing Units

12,732

Renter Percentage

22.8%

Occupancy Rate

95.2%

Renter Occupied

2,767

Owatonna, Minnesota, located in Steele County, is a community that offers a blend of rural charm and suburban convenience. The local real estate market is characterized by a mix of homeowners and renters, with a significant portion of residents opting to lease their homes rather than own them.

The Fair Market Rent (FMR) for a two-bedroom apartment in Owatonna's metro area for fiscal year 2026 is set at $1,150.
The actual market rent, as measured by Zillow's ZORI index, stands at $1,102 for a typical rental unit.
The median home value in Owatonna is $293,933, reflecting the overall cost of homeownership in the area.
Renters make up 22.8% of the housing market, indicating a notable demand for rental properties.
The average days on market (DOM) for rental listings is 71 days, suggesting a moderate speed in finding tenants.
The median household income in Owatonna is $84,906, providing insight into the financial capacity of potential tenants and buyers.

Analyzing these points, Owatonna presents a balanced opportunity for real estate investors. With a slightly lower market rent compared to the FMR, there is room for growth in rental pricing. The relatively high median home value indicates a stable property market, while the significant renter share suggests strong demand for rental units. A moderate DOM implies a healthy turnover rate without excessive vacancy periods. Coupled with the decent median income, Owatonna appears to be a viable investment location for those interested in the Section 8 housing market.

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.