Location: Sibley County, MN | Metro: McLeod 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 | $930 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $246,954 | 0.46% | F |
| 3BR | $1,370 | $281,172 | 0.49% | F |
| 4BR | $1,700 | $322,910 | 0.53% | F |
| 5BR | $1,972 | $365,522 | 0.54% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 55336, Glencoe, Minnesota, is set at $1,010 for the metro area fiscal year 2026. This figure represents the payment standard under the Section 8 Housing Choice Voucher program, which means that if you participate in this program, the government will pay up to $1,010 per month for a unit in this area. However, this is not the amount tenants will pay; it's the maximum reimbursement rate for landlords.
To put this into context, the average market rent in Glencoe, based on recent Census American Community Survey (ACS) data, is $1,096. This indicates that the FMR is slightly below the local average, suggesting that landlords might need to adjust their expectations if they plan to exclusively rely on Section 8 vouchers. The difference between the FMR and the local average rent is $86 per month, which could impact your cash flow if you're counting on higher rents.
The 22.6% of residents who are renters signifies a moderate demand for rental properties. While this percentage suggests there is a segment of the population looking for affordable housing, it also implies that the majority of residents own their homes. Therefore, landlords should ensure that their property meets the needs of low-income renters who typically benefit from Section 8 programs.
If you're looking to acquire a new rental property in Glencoe, the median home value stands at $285,664. This can serve as a benchmark for the cost of purchasing a property in this area. Given the median home value and the FMR, it's important to calculate your potential returns and expenses carefully. You'll want to consider not just the monthly rental income but also the costs associated with acquiring and maintaining a property.
Before proceeding with a Section 8 rental, you must verify that your property complies with the Housing Quality Standards (HQS). These standards ensure that the units are safe, decent, and sanitary for tenants. Meeting these criteria is non-negotiable for participation in the program. Once your property passes the HQS inspection, you can confidently list it for Section 8 tenants knowing it meets the necessary quality standards.
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.