Location: Winona County, MN | Metro: Rochester, 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 | $1,010 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $268,458 | 0.47% | F |
| 3BR | $1,770 | $344,392 | 0.51% | F |
| 4BR | $2,130 | $402,809 | 0.53% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP 55923 in Chatfield, MN, reveals a significant gap between the HUD Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the HUD FMR stands at $1,110. In contrast, the Census ACS reports a market rent of $776 for the same area. This disparity indicates that voucher tenants in ZIP 55923 can achieve positive cash flow even with units priced below the HUD FMR.
To derive the rent-to-price ratio, we use the median home value of $350,350. Given the HUD FMR of $1,110, the rent-to-price ratio is approximately 0.32%. This ratio suggests that the rental market is relatively stable compared to the overall home values, making it a favorable environment for long-term investment.
The median days on market (DOM) and the percentage of price cuts are not available for this specific ZIP code, but they typically play a role in assessing the balance between renting and buying. However, given the positive cash flow potential and the stability indicated by the rent-to-price ratio, these metrics may not be as critical in this context.
The strongest investor angle in ZIP 55923 is cashflow. With voucher tenants paying up to $1,110, which exceeds the market rent of $776, landlords can expect a steady stream of income without relying on volatile market conditions. This makes Section 8 properties particularly attractive for both landlords and small-portfolio investors seeking reliable returns.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.