Location: Wabasha 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,770 | $354,135 | 0.5% | F |
| 4BR | $2,130 | $386,080 | 0.55% | F |
U.S. Census Bureau data (2024)
14.7% of residents in ZIP 55932 are renters, indicating a modest demand for rental properties. The Fair Market Rent (FMR) for the area, as of fiscal year 2024, is set at $1110, which represents the maximum amount that a Section 8 voucher holder can pay for housing. In comparison, the market rent based on Census ACS data stands at $730, suggesting that Section 8 vouchers could cover a significant portion of the local rental costs. Landlords and small-portfolio investors should take note of this discrepancy as it presents an opportunity to stabilize cash flows with government-backed assistance.
$351,703 is the median home value in ZIP 55932, reflecting a relatively stable housing market. However, the median income of $100,078 indicates that many households might struggle to afford homeownership, thereby increasing the potential rental market. Although there's no specific data available for days on market (DOM) or the percentage of homes that have had their prices cut, the absence of these figures suggests a lack of distressed sales, which is generally positive for property values and investment stability.
Investors looking to enter the rental market in ZIP 55932 should consider the benefits of accepting Section 8 vouchers. With the FMR being $1110, it ensures a consistent and reliable income stream that aligns with the local cost of living. Moreover, the lower market rent of $730 implies that there's room for landlords to maintain competitive pricing while still benefiting from the higher reimbursement rates offered through the Section 8 program.
The verdict for Section 8 participation in ZIP 55932 is favorable. Given the modest renter share and the substantial difference between market rents and FMR, landlords stand to gain financial security and a steady tenant base by accepting Section 8 vouchers.
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.