Location: Sibley County, MN | Metro: Sibley County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 55366 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP is $970 per month for the fiscal year 2026. In contrast, the local market rent for a similar unit, based on Census ACS data, averages $738 per month.
A landlord participating in the Section 8 program receives payments from the housing authority. These payments cover the difference between the local market rent and the SAFMR, plus any utility allowances. For ZIP 55366, the tenant is expected to pay 30% of their adjusted income towards rent. This amount is then added to the utility allowance to determine the total reimbursement.
To illustrate, if a tenant's adjusted income is $1,000 per month, they would pay 30%, which is $300, towards the rent. Assuming the utility allowance is $100, the housing authority would pay the landlord the remaining amount up to the SAFMR of $970. Therefore, the housing authority would reimburse the landlord $570 ($970 - $300 - $100).
If the landlord charges the local market rent of $738, the reimbursement from the housing authority would still be calculated based on the SAFMR of $970. Thus, the housing authority would pay the landlord $670 ($970 - $300), resulting in a total reimbursement of $970 ($670 + $300). This leaves a surplus for the landlord of $232 ($970 - $738).
In summary, landlords in ZIP 55366 can expect a surplus when renting a two-bedroom apartment at the local market rate due to the higher SAFMR set by the Section 8 program. This surplus of $232 per month can help offset the costs associated with the program, such as administrative fees and potential maintenance issues.
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.