Location: Rochester, MN | Metro: Rochester, MN HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
Dodge Center, MN, located in ZIP code 55927, is a modest-sized community with a total population of 4,297 residents. The area has a relatively low percentage of renters at 16.2%, indicating that homeownership is prevalent. With a median household income of $99,566, this neighborhood is economically stable, supporting a higher median home value of $285,470.
The economic landscape of Dodge Center presents a unique opportunity for Section 8 investors. The Fair Market Rent (FMR) for ZIP code 55927 in fiscal year 2024 is set at $1110, which contrasts sharply with the actual market rent reported by the Census Bureau's American Community Survey (ACS), currently at $989. This discrepancy means that properties eligible for Section 8 vouchers can command rents above the market average, providing a financial buffer for landlords.
Given these figures, Dodge Center appears to be well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability of the local economy and the higher FMR compared to market rents ensure a steady income stream without the need for significant property management efforts. Value-add buyers can leverage the lower market rent to purchase properties below their potential Section 8 rental value, allowing for renovations that can further increase property value and rental income.
In conclusion, Dodge Center offers a balanced investment environment where the economic health of the community supports a favorable position for Section 8 properties. Whether you're looking for passive income or an active role in property enhancement, ZIP 55927 provides a solid foundation for achieving your investment goals.
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.