Location: Sibley County, MN | Metro: Mankato, MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
U.S. Census Bureau data (2024)
In ZIP code 55334, the Section 8 program operates under specific economic guidelines that directly impact landlords and small-portfolio investors. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $960. This figure represents the maximum amount that the housing authority will pay for a two-bedroom unit, reflecting the specific rental market conditions within ZIP 55334.
The local market rent, according to the Census ACS data, is currently at $895 for a similar two-bedroom unit. This means that the SAFMR is higher than the average market rent, providing an opportunity for landlords to receive slightly above-market rates if they participate in the Section 8 program.
A voucher payment under Section 8 consists of two parts: the tenant's contribution and the housing authority's reimbursement. The tenant is required to contribute 30% of their adjusted income towards rent. For simplicity, let's assume the tenant's adjusted income is $1,000 per month. In this case, the tenant would pay $300 towards rent. The remaining balance is covered by the housing authority, up to the SAFMR limit of $960.
The housing authority also provides utility allowances, which can vary based on the type of utilities included in the lease. If the allowance is $150, the total reimbursement from the housing authority would be $660 ($960 - $300 tenant contribution).
This means that for a two-bedroom apartment in ZIP 55334, the landlord could potentially receive a total of $960 per month, which includes both the tenant's contribution and the housing authority's reimbursement. However, since the local market rent is $895, participating in the Section 8 program would result in a surplus for the landlord, assuming the landlord charges the market rate. The surplus would be $75 per month, calculated as the difference between the SAFMR ($960) and the local market rent ($895).
Note that while the SAFMR is set specifically for this ZIP code, the actual reimbursement depends on the tenant's income and the utility allowances. Landlords should carefully review the details of the voucher and the tenant's income to understand the exact amount they will receive.
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.