Location: McLeod 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 | $900 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,430 | $320,386 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 55370 presents a unique challenge for landlords and small-portfolio investors when considering Section 8 tenants. With a population of 558, only 5.1% of residents are renters, indicating that this is primarily a homeowner-dominated area. This low percentage of renters suggests that there is limited demand for rental properties and, consequently, fewer Section 8 vouchers in circulation.
The median household income in 55370 is $103,750, which is relatively high. The average market rent of $1,344 represents approximately 15.8% of the median income. This figure is higher than the Federal Market Rent (FMR) of $1,070 for the fiscal year 2026, suggesting that rents in 55370 exceed the federal benchmark by about 25.6%. Landlords should be aware that while the local market rent is higher, it still falls within the acceptable range for Section 8, as long as it does not exceed the FMR.
In terms of tenant profiles, landlords in 55370 can expect to attract low-income families who qualify for Section 8 assistance. These tenants will likely have an annual income below $103,750 and will require financial aid to afford the local rent. Given the homeowner-dominated nature of the area, landlords must understand that the pool of potential Section 8 tenants is smaller, and competition among landlords for these vouchers could be fierce.
To summarize, 55370 is not a renter-heavy ZIP code, but rather an area where homeownership prevails. Despite this, landlords can still participate in the Section 8 program, targeting low-income families who need housing assistance. However, they should be prepared for a smaller pool of eligible tenants and adjust their expectations accordingly.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.