Location: Fillmore County, MN | Metro: Fillmore County, MN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The rent math in ZIP 55922 does not align favorably for landlords. The HUD Fair Market Rent (FMR) for the area is set at $910 per month for fiscal year 2024. However, the Census ACS data indicates that the market rent stands at $619. This discrepancy means that landlords aiming to participate in the Section 8 program might struggle to find tenants willing to pay the higher FMR rate, given the lower market rent.
Acquisition of properties in this ZIP code is relatively affordable, with the median home value being $212,206. Unfortunately, the data does not provide insights into the days on market (DOM) or the percentage of homes that have been listed with a price cut. Without these figures, it's challenging to gauge how quickly homes sell and if there is a trend towards reduced pricing to attract buyers.
Tenant demand in ZIP 55922 is modest. With a total population of 818, only 14.7% are renters. This translates to approximately 120 potential Section 8 tenants, which is a small pool considering the size of the housing market. Landlords should be cautious about overestimating the number of available tenants who can meet the FMR requirements.
Given the analysis, ZIP 55922 presents a mixed outlook for landlords and small-portfolio investors interested in Section 8 participation. While property acquisition costs are reasonable, the mismatch between FMR and market rents could pose challenges in attracting tenants. Additionally, the limited renter population suggests that competition for Section 8 tenants will be intense. Therefore, careful consideration is advised before investing in this area under the Section 8 program.
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.