Location: Sibley County, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,120 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
U.S. Census Bureau data (2024)
6.7% of the population in ZIP 55338 are renters, indicating a relatively small but stable rental market. The Fair Market Rent (FMR) for the area, set at $1690 per month for the fiscal year 2024, represents the upper limit that landlords can charge for Section 8 vouchers. This figure is slightly above the $1,717 average market rent reported by the Census Bureau's American Community Survey, suggesting that landlords participating in the Section 8 program could potentially offer competitive rates while still benefiting from the security of government-backed payments. With a median home value of $310,315, it's clear that the housing stock in this area is valued higher than the national average, which might make it an attractive location for those looking to invest in property. However, the median income of $86,563 indicates that residents have a moderate purchasing power, which could impact their ability to afford higher rents outside of the subsidized program.
The lack of data on days on market (DOM) and the percentage of price-cut shares suggests that there isn't a significant issue with properties remaining unsold or needing to be discounted to attract buyers. This stability can be reassuring for small-portfolio investors who might be concerned about the liquidity of their investments. Despite the limited data points, the comparison between the FMR and the market rent provides insight into the potential profitability of renting properties in ZIP 55338 through the Section 8 program. Given the slight premium landlords can charge over the average market rent, participating in Section 8 can be a viable strategy for ensuring steady cash flow and minimizing vacancy periods.
Section 8 Verdict: ZIP 55338 presents a modest yet stable opportunity for landlords willing to participate in the Section 8 program, with the potential to earn slightly above average market rents while securing reliable tenants.
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.