Location: Winona County, MN | Metro: Wabasha County, MN HUD Metro FMR Area
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 | $1,050 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,770 | $289,700 | 0.61% | D |
| 4BR | $2,080 | $376,333 | 0.55% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 55910 might have several concerns regarding the viability of investing in a Section 8 property. Let's address these specific objections with the available data.
Will FMR $910 (zip FY 2024) cover the mortgage on a $297,816 home?
The Fair Market Rent (FMR) for ZIP 55910 is set at $910 for the fiscal year 2024. This amount must be sufficient to cover the mortgage payment on a home valued at $297,816. Assuming a typical 30-year fixed-rate mortgage at an interest rate of around 4%, the monthly mortgage payment would be approximately $1,440. Clearly, the FMR of $910 does not cover the mortgage payment alone. To make this investment viable, additional income sources or lower financing costs would be necessary.
Is there enough renter demand at 10.5%?
The percentage of renters in ZIP 55910 stands at 10.5%. This figure raises questions about whether there is sufficient demand among potential tenants who qualify for Section 8 housing assistance. While 10.5% may seem low, it's important to consider that this percentage represents a portion of the total population. If the area has a large population base, even a small percentage can translate into a significant number of potential tenants. However, the data provided does not give us a complete picture of the actual number of qualified renters or the vacancy rates in the area. Additional research would be needed to confirm if the demand meets the supply.
Will vouchers keep pace with $850 market rents?
The market rent in ZIP 55910 is reported at $850. The question here is whether the voucher amounts will increase to match rising market rents. According to the latest HUD guidelines, voucher amounts are adjusted annually based on changes in the FMR. Given that the FMR for 2024 is higher than the current market rent, it suggests that the voucher program is designed to keep pace with market conditions. However, the exact amount of the adjustment is not specified in the data, and future adjustments depend on economic conditions and policy decisions. It is advisable to monitor local HUD announcements and adjust expectations accordingly.
In summary, while the data provides some insights into the financial aspects of investing in ZIP 55910 under Section 8, it also highlights areas where further investigation is required. The FMR is insufficient to cover mortgage payments on its own, indicating a need for strategic financing or supplementary income streams. The percentage of renters alone does not fully determine the tenant pool, necessitating a deeper dive into the local rental market dynamics. Lastly, although voucher amounts are intended to keep up with market rents, the specifics of future adjustments remain uncertain.
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.